{"rows":150,"os":"0","page":"1","total":"38","everything":{"_32d538c4ccb9de11810b604d79ff1797df340a82":{"id":"32d538c4ccb9de11810b604d79ff1797df340a82","title":"Remarks by World Bank Group President David Malpass at Compact with Africa Conference","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2021/08/27/remarks-by-world-bank-group-president-david-malpass-at-compact-with-africa-conference","descr":"Remarks by World Bank Group President David Malpass at Compact with Africa Conference","keywd":"People:david-malpass,People:world-bank-group-president","lang":{"0":{"cdata!":"English"}},"cqpath":"/content/wb-home/en/news/speech/2021/08/27/remarks-by-world-bank-group-president-david-malpass-at-compact-with-africa-conference","wcmsource":"cq5","content":"Remarks Delivered at Conference Session 1: Framework Conditions for Business and Investment  Chancellor Merkel, thank you for your leadership and support for Compact with Africa (CwA) countries. African countries face significant challenges, including rising inflation and inequality, woefully insufficient access to COVID-19 vaccines, unsustainable debt burdens, fragility, and climate change. The World Bank Group is a dedicated partner for development in Africa. We work closely with each of you here today, which provides us with strength and value-added. There is an urgent need for COVID-19 vaccines. The World Bank now has vaccine financing in 54 countries. More than half are in Africa, including nine in CwA countries. We can readily increase the number of countries and the financing for each. We have partnered with the African Union to support the African Vaccine Acquisition Trust (AVAT). Resources are available for countries to purchase and deploy vaccines for up to 400 million people across Africa. Eleven African countries started receiving their first batch in early August. This included five CwA countries: Togo, Ghana, Tunisia, Egypt, and Ethiopia. I want to be clear that while financing is available, there is still a severe shortage of vaccine supplies and deliveries. The Multilateral Leaders Taskforce on COVID-19 – which includes Tedros, Ngozi, Kristalina and myself – addressed this in a joint statement earlier today. It’s a blunt statement. The Taskforce’s data shows that G7 countries have collectively pre-purchased 2.4 billion excess doses, and that’s not counting their options. The World Bank Group is also working to increase vaccine production in Africa. This is a highly complex challenge, and one that requires the urgent cooperation of vaccine manufacturers, vaccine-producing countries, and countries that have already achieved high vaccination rates. The IFC, led by Makhtar Diop, who is with me today, is leading multiple consortia to support Africa’s regional vaccine production. Alongside Germany’s KfW, we have concluded the mobilization of a financing package totaling €600 million euros for Aspen Pharmacare in South Africa. IFC is also working to support manufacturing hubs for vaccines in Senegal and Rwanda. The World Bank Group is also helping CwA countries build a favorable environment for private sector growth. The IFC conducts detailed private sector diagnostics in all twelve CwA countries.   I also want to underscore the crucial role of large net positive flows, especially through grants and zero interest rate loans. This can be done very efficiently through IDA. It includes a private sector window that enhances capital mobilization. In addition to providing current resources, a large replenishment for IDA provides preparedness for future crises, as we’ve seen through the COVID-19 pandemic. Working with Germany, all of you here, and all our shareholders, I am looking forward to a very successful IDA20 replenishment by year-end. Even so, much more long-term capital is needed, particularly highly concessional resources, to invest in energy access, climate protection, human capital, women empowerment, and digitalization, among other development priorities. Chancellor Merkel, Excellencies, the World Bank Group is a deeply committed partner to you and the Compact with Africa. Thank you very much.","content_1000":"Remarks Delivered at Conference Session 1: Framework Conditions for Business and Investment  Chancellor Merkel, thank you for your leadership and support for Compact with Africa (CwA) countries. African countries face significant challenges, including rising inflation and inequality, woefully insufficient access to COVID-19 vaccines, unsustainable debt burdens, fragility, and climate change. The World Bank Group is a dedicated partner for development in Africa. We work closely with each of you here today, which provides us with strength and value-added. There is an urgent need for COVID-19 vaccines. The World Bank now has vaccine financing in 54 countries. More than half are in Africa, including nine in CwA countries. We can readily increase the number of countries and the financing for each. We have partnered with the African Union to support the African Vaccine Acquisition Trust (AVAT). Resources are available for countries to purchase and deploy vaccines for up to 400 million p","displayconttype":"Speeches and Transcripts","originating_unit":"Office of the President, EXC","originating_unit_exact":"Office of the President, EXC","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","masterconttype":"Speeches and Transcripts","node_id":"32d538c4ccb9de11810b604d79ff1797df340a82","wn_title":"Remarks by World Bank Group President David Malpass at Compact with Africa Conference","wn_desc":"Remarks Delivered at Conference Session 1: Framework Conditions for Business and Investment  Chancellor Merkel, thank you for your leadership and support for Compact with Africa (CwA) countries. African countries face significant challenges, including rising inflation and inequality, woefully insufficient access to COVID-19 vaccines, unsustainable debt burdens, fragility, and climate change. The World Bank Group is a dedicated partner for development in Africa. We work closely with each of you here today, which provides us with strength and value-added. There is an urgent need for COVID-19 vaccines. The World Bank now has vaccine financing in 54 countries. More than half are in Africa, including nine in CwA countries. We can readily increase the number of countries and the financing for each. We have partnered with the African Union to support the African Vaccine Acquisition Trust (AVAT). Resources are available for countries to purchase and deploy vaccines for up to 400 million people across Africa. Eleven African countries started receiving their first batch in early August. This included five CwA countries: Togo, Ghana, Tunisia, Egypt, and Ethiopia. I want to be clear that while financing is available, there is still a severe shortage of vaccine supplies and deliveries. The Multilateral Leaders Taskforce on COVID-19 – which includes Tedros, Ngozi, Kristalina and myself – addressed this in a joint statement earlier today. It’s a blunt statement. The Taskforce’s data shows that G7 countries have collectively pre-purchased 2.4 billion excess doses, and that’s not counting their options. The World Bank Group is also working to increase vaccine production in Africa. This is a highly complex challenge, and one that requires the urgent cooperation of vaccine manufacturers, vaccine-producing countries, and countries that have already achieved high vaccination rates. The IFC, led by Makhtar Diop, who is with me today, is leading multiple consortia to support Africa’s regional vaccine production. Alongside Germany’s KfW, we have concluded the mobilization of a financing package totaling €600 million euros for Aspen Pharmacare in South Africa. IFC is also working to support manufacturing hubs for vaccines in Senegal and Rwanda. The World Bank Group is also helping CwA countries build a favorable environment for private sector growth. The IFC conducts detailed private sector diagnostics in all twelve CwA countries.   I also want to underscore the crucial role of large net positive flows, especially through grants and zero interest rate loans. This can be done very efficiently through IDA. It includes a private sector window that enhances capital mobilization. In addition to providing current resources, a large replenishment for IDA provides preparedness for future crises, as we’ve seen through the COVID-19 pandemic. Working with Germany, all of you here, and all our shareholders, I am looking forward to a very successful IDA20 replenishment by year-end. Even so, much more long-term capital is needed, particularly highly concessional resources, to invest in energy access, climate protection, human capital, women empowerment, and digitalization, among other development priorities. Chancellor Merkel, Excellencies, the World Bank Group is a deeply committed partner to you and the Compact with Africa. Thank you very much.","upi":"000512825","master_date":"2021-08-27T16:51:03Z","master_date_srt":"2021-08-27T16:51:03Z","master_recent_date_srt":"2021-08-27T16:51:03Z","master_recent_date":"2021-08-27T16:51:03Z","short_description":"Remarks by World Bank Group President David Malpass at Compact with Africa Conference","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","desc":"Remarks Delivered at Conference Session 1: Framework Conditions for Business and Investment  Chancellor Merkel, thank you for your leadership and support for Compact with Africa (CwA) countries. African countries face significant challenges, including rising inflation and inequality, woefully insufficient access to COVID-19 vaccines, unsustainable debt burdens, fragility, and climate change. The World Bank Group is a dedicated partner for development in Africa. We work closely with each of you here today, which provides us with strength and value-added. There is an urgent need for COVID-19 vaccines. The World Bank now has vaccine financing in 54 countries. More than half are in Africa, including nine in CwA countries. We can readily increase the number of countries and the financing for each. We have partnered with the African Union to support the African Vaccine Acquisition Trust (AVAT). Resources are available for countries to purchase and deploy vaccines for up to 400 million people across Africa. Eleven African countries started receiving their first batch in early August. This included five CwA countries: Togo, Ghana, Tunisia, Egypt, and Ethiopia. I want to be clear that while financing is available, there is still a severe shortage of vaccine supplies and deliveries. The Multilateral Leaders Taskforce on COVID-19 – which includes Tedros, Ngozi, Kristalina and myself – addressed this in a joint statement earlier today. It’s a blunt statement. The Taskforce’s data shows that G7 countries have collectively pre-purchased 2.4 billion excess doses, and that’s not counting their options. The World Bank Group is also working to increase vaccine production in Africa. This is a highly complex challenge, and one that requires the urgent cooperation of vaccine manufacturers, vaccine-producing countries, and countries that have already achieved high vaccination rates. The IFC, led by Makhtar Diop, who is with me today, is leading multiple consortia to support Africa’s regional vaccine production. Alongside Germany’s KfW, we have concluded the mobilization of a financing package totaling €600 million euros for Aspen Pharmacare in South Africa. IFC is also working to support manufacturing hubs for vaccines in Senegal and Rwanda. The World Bank Group is also helping CwA countries build a favorable environment for private sector growth. The IFC conducts detailed private sector diagnostics in all twelve CwA countries.   I also want to underscore the crucial role of large net positive flows, especially through grants and zero interest rate loans. This can be done very efficiently through IDA. It includes a private sector window that enhances capital mobilization. In addition to providing current resources, a large replenishment for IDA provides preparedness for future crises, as we’ve seen through the COVID-19 pandemic. Working with Germany, all of you here, and all our shareholders, I am looking forward to a very successful IDA20 replenishment by year-end. Even so, much more long-term capital is needed, particularly highly concessional resources, to invest in energy access, climate protection, human capital, women empowerment, and digitalization, among other development priorities. Chancellor Merkel, Excellencies, the World Bank Group is a deeply committed partner to you and the Compact with Africa. Thank you very much.","date":"2021-08-27T16:51:03Z","contenttype":"Speeches and Transcripts"},"_310d5bb149e67c65bf7a97e3bec4d1fe99bab08e":{"id":"310d5bb149e67c65bf7a97e3bec4d1fe99bab08e","title":"Remarks by Axel van Trotsenburg, World Bank Managing Director, Operations: WBG-Africa Partnership Getting Stronger and Promoting Recovery","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2021/07/15/remarks-by-axel-van-trotsenburg-wbg-africa-partnership-getting-stronger-and-promoting-recovery","descr":"Remarks by Axel van Trotsenburg, World Bank Managing Director, Operations: WBG-Africa Partnership Getting Stronger and Promoting Recovery","keywd":"People:axel-van-trotsenburg-","lang":{"0":{"cdata!":"English"}},"cqpath":"/content/wb-home/en/news/speech/2021/07/15/remarks-by-axel-van-trotsenburg-wbg-africa-partnership-getting-stronger-and-promoting-recovery","wcmsource":"cq5","content":" Your Excellency President Alassane Ouattara; Your Excellencies Ladies and Gentlemen, Heads of State; Your Excellencies, Presidents of the African Union, ECOWAS and UEMOA. It is an honor for me to be here with you today. I would like to thank, on behalf of the World Bank Group, His Excellency Mr. Alassane Ouattara, President of the Republic of Côte d'Ivoire, for his kind invitation and his hospitality. I also thank your Excellencies for coming together in solidarity for the cause of Africa at this very challenging time. I am joined here by my colleague Makhtar Diop, IFC Managing Director and Africa Regional Vice Presidents for World Bank and the IFC. We are delighted to be here today and are here to listen to you. I would like to highlight the critical importance of these times for Africa. The stakes are high with the impact of COVID pandemic on Africa’s development goals and this is the time to chart a path forward. I have three key messages:The World Bank Group is strategically focused on Africa – and this is largely enabled by IDA.IDA supports countries with both short-term crisis response and longer-term development priorities.IDA is here to support Africa in its ambition for a strong and inclusive recovery. The African  ambition ultimately makes IDA stronger as a partner for Africa and its quest for long term development.  Structural Shift to Africa – driven by IDA Over the last two decades, there has been an increasing transformation of the World Bank’s relationship with Africa. Africa has always been important to our operations. And it has become the dominant region for our engagement.  In that sense, our long-term strategic partnership with Africa is more important than ever. Increasingly our operations are shifting towards Africa.  Consider this: in 2000, our entire lending to Africa was about $3.5 billion which was only 15 percent of our entire lending program.  This has changed, particularly in the last few years,  and resulted in our last fiscal year, which ended at end of June, showing commitments of $30 billion to the African continent – which represents 45% of our total financial engagement worldwide. This is not temporary – this is to stay.  Africa has become an important region for operations at the World Bank – this is not only in lending but also in manpower.  We are building our presence in all countries in Africa. In the last 4-5 years, we have increased our staffing in the region by over 40%. We have 1400 operations staff – and we will increase this further. We have 2 Vice Presidents for the Africa region and increasing presence of managers based in Africa – we quadrupled our presence of managers in the last few years. Behind this strategic shift is IDA. IDA Engagement IDA depends on the strongest partnership between African countries, the World Bank as an institution, and donor countries. Over time we have been increasing our IDA engagement in Africa – from 10 years ago in the order of $10 billion dollars to $25 billion dollars today. As 2/3 of IDA resources are going to Africa, today’s meeting is an important moment in the negotiations of IDA20 – as it is an opportunity to hear from Heads of State your development priorities and how IDA can support. This shift is a big change – if you keep in mind that IDA was created over 60 years ago largely as a way to deal with the Asian challenge, including India.   In the initial years it was India that took the bulk of the resources and until about 10 years ago, it was Asia who benefited largely from IDA resources. We are also increasingly concerned about countries that are affected by fragility and conflict. And here we are also increasing our support – in the last fiscal year we increased our engagement in fragile states from $10 billion to over $14 billion.  This is a 40 percent increase – and this will stay. Also to note, that IDA is a concessional resource – which means not only long-term concessional credits over long periods of time – but also increasingly supporting countries with grant financing.  Last year IDA provided to the African continent $10 billion in grants – this is going to be very important as we go further. Value of IDA IDA’s operating model is country driven – and based on the priorities articulated by Africa countries. This is the most effective way we can make IDA successful – following country development priorities. Secondly, IDA offers predictable finance, which is critical for the development agenda.   And finally, IDA is the largest source of unearmarked concessional finance, which helps us finance programs based on your priorities. IDA has a strong short term crisis focus – as witnessed through the COVID response but also issues such as conflict locusts, and drought. That said, the World Bank is also about long-term development – and how IDA can support the African continent with sustainable and inclusive development projects. That is where most of the money will be provided, so that that the results can lead to sustained poverty reduction and more prosperity. World Bank Group COVID Response – $157 billion over 15 months IDA has been a strong partner with Africa in time of crisis, this past year moving with speed and scale to help our borrowers mitigate the crisis caused by the pandemic. The pandemic has created a massive crisis, and there was a massive need to provide support. When the crisis broke out, the World Bank together with the IFC said we would together provide $150-160 billion support worldwide.  Of which about $100 billion would come from the World Bank – through IBRD/IDA. We have been successful – and together have provided about $157 billion.  Since April 2020, on the World Bank side, of the $100 billion delivered, $41 billion went to Africa and most of it was related to crisis support – not only health, but also, social protection and ensuring jobs are preserved. In this context, we made a strategic decision to frontload the IDA resources from IDA19 and use the resources in 2 years instead of 3 years, with a consequence that we have to fundraise for the next round. And that is why we are here today, to get your guidance – and while the needs of the continent go beyond IDA – it is important that every institution supporting the region does its maximum. That needs to continue in particular as we go to the longer- term recovery. Vaccines The African continent has been left out on getting access to vaccines. Only 1% of the African population has been fully vaccinated. This is completely unacceptable and it is a problem that needs to be resolved urgently. At the World Bank we have welcomed an initiative by the African Union to set a clear target of 40 percent of the population to be vaccinated by the end of this year and 60 percent by middle of next year. But we are far from reaching this.   The African Union negotiated a deal with Johnson & Johnson to get 400 million doses this year. But the financing was missing. We are partnering with the AU and have said we can finance this fully.  In fact, the World Bank has said we are willing to put $20 billion for vaccine acquisition and deployment worldwide and whatever is necessary, we are willing to finance that. If there is more money needed, we will be there. Because this is a crisis – and as long as the COVID crisis is affecting countries, economic recovery is not assured. Supporting Africa’s Recovery – long term That means we need to ensure that Africa has the means to recover not only from the pandemic, but also economically and socially. And that requires more resources – to support these programs and ensure they are fully financed. That is the reason why we started the IDA20 negotiations early, in April and we would like to finish them at the end of this year, in Japan. But IDA also focuses on the longer-term development needs as well - such as providing for inclusive and sustainable recovery.  Getting back on track to the development goals, to the SDGS, to poverty reduction. These are the ultimate test of success. As I said earlier, we are here today to listen and learn. When I was in Paris in May, along with many of you here today at the Summit hosted by President Macron, I had the occasion to meet President Ouattara.  We had a very good discussion about the challenges the Africa continent was facing.   I was grateful when he said we could organize this kind of brainstorming meeting with you. It is ultimately about getting the best possible results from IDA – and strategically, what are the key topics we will need to support in IDA20. We have right now about 40 borrower representatives, mostly from Africa, who have been articulating already important priorities for the African continent. I name only a few – jobs, private sector recovery, human capital investment, as well as digital economy – but there are many others that are important. These are topics that are fundamental to the success of IDA 20. Financing Needs We also need to make sure that the Africa continent will have the resources to carry out these development priorities. Clearly, IDA is only one actor – but we are an important one and have been successful across beneficiary countries. Just to give you a sense of the financial dimensions, we have calculated for all of the IDA countries -this is not only Africa – that there are about $700 billion in needs for the next three years. For the IDA countries, the demand is about $112 billion that was articulated by the IDA countries and 70 percent is needed for Africa.  Just to compare, when we negotiated the last IDA, we had $82 billion for IDA19. In the summit in Paris, President Ouattara mentioned $90 billion would be a good number. But we also need donor resources.  We were able to get a floor commitment of donors of $25 billion. So, the goal is not only to have $90 billion, but whether we could get to $95 or $100 billion. There your support is necessary, because behind the money will be the programs – programs for COVID response, programs for recovery, programs for long term development. Those need to be financed and are needed for your countries. While the World Bank focuses mainly on working with governments, we know that for a successful economic recovery, we will also need the private sector.  We have been supporting private sector development through the IDA private sector window that helps de-risk IFC operations but clearly more needs to be done. So any presentation of the World Bank Group would not be complete if we would not also touch upon private sector development and where our private sector arm, the IFC, could make a huge difference.  In this context, I am very happy to introduce an old friend and colleague, Makhtar Diop, with whom I have worked many years together. And now we are working together towards a resilient recovery in Africa.  The World Bank is working to get a strong IDA20, and Makhtar trying to get the strongest possible IFC program in Africa, and he will share some of his reflections now. Thank you. RELATED: Accompanying PowerPoint: WBG-Africa Partnership Getting Stronger and Promoting Recovery ","content_1000":" Your Excellency President Alassane Ouattara; Your Excellencies Ladies and Gentlemen, Heads of State; Your Excellencies, Presidents of the African Union, ECOWAS and UEMOA. It is an honor for me to be here with you today. I would like to thank, on behalf of the World Bank Group, His Excellency Mr. Alassane Ouattara, President of the Republic of Côte d'Ivoire, for his kind invitation and his hospitality. I also thank your Excellencies for coming together in solidarity for the cause of Africa at this very challenging time. I am joined here by my colleague Makhtar Diop, IFC Managing Director and Africa Regional Vice Presidents for World Bank and the IFC. We are delighted to be here today and are here to listen to you. I would like to highlight the critical importance of these times for Africa. The stakes are high with the impact of COVID pandemic on Africa’s development goals and this is the time to chart a path forward. I have three key messages:The World Bank Group is strategically focus","displayconttype":"Speeches and Transcripts","originating_unit":"External and Corporate Relations - Corporate Communications, ECRCC","originating_unit_exact":"External and Corporate Relations - Corporate Communications, ECRCC","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","masterconttype":"Speeches and Transcripts","node_id":"310d5bb149e67c65bf7a97e3bec4d1fe99bab08e","wn_title":"Remarks by Axel van Trotsenburg, World Bank Managing Director, Operations: WBG-Africa Partnership Getting Stronger and Promoting Recovery","wn_desc":" Your Excellency President Alassane Ouattara; Your Excellencies Ladies and Gentlemen, Heads of State; Your Excellencies, Presidents of the African Union, ECOWAS and UEMOA. It is an honor for me to be here with you today. I would like to thank, on behalf of the World Bank Group, His Excellency Mr. Alassane Ouattara, President of the Republic of Côte d'Ivoire, for his kind invitation and his hospitality. I also thank your Excellencies for coming together in solidarity for the cause of Africa at this very challenging time. I am joined here by my colleague Makhtar Diop, IFC Managing Director and Africa Regional Vice Presidents for World Bank and the IFC. We are delighted to be here today and are here to listen to you. I would like to highlight the critical importance of these times for Africa. The stakes are high with the impact of COVID pandemic on Africa’s development goals and this is the time to chart a path forward. I have three key messages:The World Bank Group is strategically focused on Africa – and this is largely enabled by IDA.IDA supports countries with both short-term crisis response and longer-term development priorities.IDA is here to support Africa in its ambition for a strong and inclusive recovery. The African  ambition ultimately makes IDA stronger as a partner for Africa and its quest for long term development.  Structural Shift to Africa – driven by IDA Over the last two decades, there has been an increasing transformation of the World Bank’s relationship with Africa. Africa has always been important to our operations. And it has become the dominant region for our engagement.  In that sense, our long-term strategic partnership with Africa is more important than ever. Increasingly our operations are shifting towards Africa.  Consider this: in 2000, our entire lending to Africa was about $3.5 billion which was only 15 percent of our entire lending program.  This has changed, particularly in the last few years,  and resulted in our last fiscal year, which ended at end of June, showing commitments of $30 billion to the African continent – which represents 45% of our total financial engagement worldwide. This is not temporary – this is to stay.  Africa has become an important region for operations at the World Bank – this is not only in lending but also in manpower.  We are building our presence in all countries in Africa. In the last 4-5 years, we have increased our staffing in the region by over 40%. We have 1400 operations staff – and we will increase this further. We have 2 Vice Presidents for the Africa region and increasing presence of managers based in Africa – we quadrupled our presence of managers in the last few years. Behind this strategic shift is IDA. IDA Engagement IDA depends on the strongest partnership between African countries, the World Bank as an institution, and donor countries. Over time we have been increasing our IDA engagement in Africa – from 10 years ago in the order of $10 billion dollars to $25 billion dollars today. As 2/3 of IDA resources are going to Africa, today’s meeting is an important moment in the negotiations of IDA20 – as it is an opportunity to hear from Heads of State your development priorities and how IDA can support. This shift is a big change – if you keep in mind that IDA was created over 60 years ago largely as a way to deal with the Asian challenge, including India.   In the initial years it was India that took the bulk of the resources and until about 10 years ago, it was Asia who benefited largely from IDA resources. We are also increasingly concerned about countries that are affected by fragility and conflict. And here we are also increasing our support – in the last fiscal year we increased our engagement in fragile states from $10 billion to over $14 billion.  This is a 40 percent increase – and this will stay. Also to note, that IDA is a concessional resource – which means not only long-term concessional credits over long periods of time – but also increasingly supporting countries with grant financing.  Last year IDA provided to the African continent $10 billion in grants – this is going to be very important as we go further. Value of IDA IDA’s operating model is country driven – and based on the priorities articulated by Africa countries. This is the most effective way we can make IDA successful – following country development priorities. Secondly, IDA offers predictable finance, which is critical for the development agenda.   And finally, IDA is the largest source of unearmarked concessional finance, which helps us finance programs based on your priorities. IDA has a strong short term crisis focus – as witnessed through the COVID response but also issues such as conflict locusts, and drought. That said, the World Bank is also about long-term development – and how IDA can support the African continent with sustainable and inclusive development projects. That is where most of the money will be provided, so that that the results can lead to sustained poverty reduction and more prosperity. World Bank Group COVID Response – $157 billion over 15 months IDA has been a strong partner with Africa in time of crisis, this past year moving with speed and scale to help our borrowers mitigate the crisis caused by the pandemic. The pandemic has created a massive crisis, and there was a massive need to provide support. When the crisis broke out, the World Bank together with the IFC said we would together provide $150-160 billion support worldwide.  Of which about $100 billion would come from the World Bank – through IBRD/IDA. We have been successful – and together have provided about $157 billion.  Since April 2020, on the World Bank side, of the $100 billion delivered, $41 billion went to Africa and most of it was related to crisis support – not only health, but also, social protection and ensuring jobs are preserved. In this context, we made a strategic decision to frontload the IDA resources from IDA19 and use the resources in 2 years instead of 3 years, with a consequence that we have to fundraise for the next round. And that is why we are here today, to get your guidance – and while the needs of the continent go beyond IDA – it is important that every institution supporting the region does its maximum. That needs to continue in particular as we go to the longer- term recovery. Vaccines The African continent has been left out on getting access to vaccines. Only 1% of the African population has been fully vaccinated. This is completely unacceptable and it is a problem that needs to be resolved urgently. At the World Bank we have welcomed an initiative by the African Union to set a clear target of 40 percent of the population to be vaccinated by the end of this year and 60 percent by middle of next year. But we are far from reaching this.   The African Union negotiated a deal with Johnson & Johnson to get 400 million doses this year. But the financing was missing. We are partnering with the AU and have said we can finance this fully.  In fact, the World Bank has said we are willing to put $20 billion for vaccine acquisition and deployment worldwide and whatever is necessary, we are willing to finance that. If there is more money needed, we will be there. Because this is a crisis – and as long as the COVID crisis is affecting countries, economic recovery is not assured. Supporting Africa’s Recovery – long term That means we need to ensure that Africa has the means to recover not only from the pandemic, but also economically and socially. And that requires more resources – to support these programs and ensure they are fully financed. That is the reason why we started the IDA20 negotiations early, in April and we would like to finish them at the end of this year, in Japan. But IDA also focuses on the longer-term development needs as well - such as providing for inclusive and sustainable recovery.  Getting back on track to the development goals, to the SDGS, to poverty reduction. These are the ultimate test of success. As I said earlier, we are here today to listen and learn. When I was in Paris in May, along with many of you here today at the Summit hosted by President Macron, I had the occasion to meet President Ouattara.  We had a very good discussion about the challenges the Africa continent was facing.   I was grateful when he said we could organize this kind of brainstorming meeting with you. It is ultimately about getting the best possible results from IDA – and strategically, what are the key topics we will need to support in IDA20. We have right now about 40 borrower representatives, mostly from Africa, who have been articulating already important priorities for the African continent. I name only a few – jobs, private sector recovery, human capital investment, as well as digital economy – but there are many others that are important. These are topics that are fundamental to the success of IDA 20. Financing Needs We also need to make sure that the Africa continent will have the resources to carry out these development priorities. Clearly, IDA is only one actor – but we are an important one and have been successful across beneficiary countries. Just to give you a sense of the financial dimensions, we have calculated for all of the IDA countries -this is not only Africa – that there are about $700 billion in needs for the next three years. For the IDA countries, the demand is about $112 billion that was articulated by the IDA countries and 70 percent is needed for Africa.  Just to compare, when we negotiated the last IDA, we had $82 billion for IDA19. In the summit in Paris, President Ouattara mentioned $90 billion would be a good number. But we also need donor resources.  We were able to get a floor commitment of donors of $25 billion. So, the goal is not only to have $90 billion, but whether we could get to $95 or $100 billion. There your support is necessary, because behind the money will be the programs – programs for COVID response, programs for recovery, programs for long term development. Those need to be financed and are needed for your countries. While the World Bank focuses mainly on working with governments, we know that for a successful economic recovery, we will also need the private sector.  We have been supporting private sector development through the IDA private sector window that helps de-risk IFC operations but clearly more needs to be done. So any presentation of the World Bank Group would not be complete if we would not also touch upon private sector development and where our private sector arm, the IFC, could make a huge difference.  In this context, I am very happy to introduce an old friend and colleague, Makhtar Diop, with whom I have worked many years together. And now we are working together towards a resilient recovery in Africa.  The World Bank is working to get a strong IDA20, and Makhtar trying to get the strongest possible IFC program in Africa, and he will share some of his reflections now. Thank you. RELATED: Accompanying PowerPoint: WBG-Africa Partnership Getting Stronger and Promoting Recovery ","upi":"000533456","master_date":"2021-07-15T09:27:00Z","master_date_srt":"2021-07-15T09:27:00Z","master_recent_date_srt":"2021-07-15T09:27:00Z","master_recent_date":"2021-07-15T09:27:00Z","short_description":"Remarks by Axel van Trotsenburg, World Bank Managing Director, Operations: WBG-Africa Partnership Getting Stronger and Promoting Recovery","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","desc":" Your Excellency President Alassane Ouattara; Your Excellencies Ladies and Gentlemen, Heads of State; Your Excellencies, Presidents of the African Union, ECOWAS and UEMOA. It is an honor for me to be here with you today. I would like to thank, on behalf of the World Bank Group, His Excellency Mr. Alassane Ouattara, President of the Republic of Côte d'Ivoire, for his kind invitation and his hospitality. I also thank your Excellencies for coming together in solidarity for the cause of Africa at this very challenging time. I am joined here by my colleague Makhtar Diop, IFC Managing Director and Africa Regional Vice Presidents for World Bank and the IFC. We are delighted to be here today and are here to listen to you. I would like to highlight the critical importance of these times for Africa. The stakes are high with the impact of COVID pandemic on Africa’s development goals and this is the time to chart a path forward. I have three key messages:The World Bank Group is strategically focused on Africa – and this is largely enabled by IDA.IDA supports countries with both short-term crisis response and longer-term development priorities.IDA is here to support Africa in its ambition for a strong and inclusive recovery. The African  ambition ultimately makes IDA stronger as a partner for Africa and its quest for long term development.  Structural Shift to Africa – driven by IDA Over the last two decades, there has been an increasing transformation of the World Bank’s relationship with Africa. Africa has always been important to our operations. And it has become the dominant region for our engagement.  In that sense, our long-term strategic partnership with Africa is more important than ever. Increasingly our operations are shifting towards Africa.  Consider this: in 2000, our entire lending to Africa was about $3.5 billion which was only 15 percent of our entire lending program.  This has changed, particularly in the last few years,  and resulted in our last fiscal year, which ended at end of June, showing commitments of $30 billion to the African continent – which represents 45% of our total financial engagement worldwide. This is not temporary – this is to stay.  Africa has become an important region for operations at the World Bank – this is not only in lending but also in manpower.  We are building our presence in all countries in Africa. In the last 4-5 years, we have increased our staffing in the region by over 40%. We have 1400 operations staff – and we will increase this further. We have 2 Vice Presidents for the Africa region and increasing presence of managers based in Africa – we quadrupled our presence of managers in the last few years. Behind this strategic shift is IDA. IDA Engagement IDA depends on the strongest partnership between African countries, the World Bank as an institution, and donor countries. Over time we have been increasing our IDA engagement in Africa – from 10 years ago in the order of $10 billion dollars to $25 billion dollars today. As 2/3 of IDA resources are going to Africa, today’s meeting is an important moment in the negotiations of IDA20 – as it is an opportunity to hear from Heads of State your development priorities and how IDA can support. This shift is a big change – if you keep in mind that IDA was created over 60 years ago largely as a way to deal with the Asian challenge, including India.   In the initial years it was India that took the bulk of the resources and until about 10 years ago, it was Asia who benefited largely from IDA resources. We are also increasingly concerned about countries that are affected by fragility and conflict. And here we are also increasing our support – in the last fiscal year we increased our engagement in fragile states from $10 billion to over $14 billion.  This is a 40 percent increase – and this will stay. Also to note, that IDA is a concessional resource – which means not only long-term concessional credits over long periods of time – but also increasingly supporting countries with grant financing.  Last year IDA provided to the African continent $10 billion in grants – this is going to be very important as we go further. Value of IDA IDA’s operating model is country driven – and based on the priorities articulated by Africa countries. This is the most effective way we can make IDA successful – following country development priorities. Secondly, IDA offers predictable finance, which is critical for the development agenda.   And finally, IDA is the largest source of unearmarked concessional finance, which helps us finance programs based on your priorities. IDA has a strong short term crisis focus – as witnessed through the COVID response but also issues such as conflict locusts, and drought. That said, the World Bank is also about long-term development – and how IDA can support the African continent with sustainable and inclusive development projects. That is where most of the money will be provided, so that that the results can lead to sustained poverty reduction and more prosperity. World Bank Group COVID Response – $157 billion over 15 months IDA has been a strong partner with Africa in time of crisis, this past year moving with speed and scale to help our borrowers mitigate the crisis caused by the pandemic. The pandemic has created a massive crisis, and there was a massive need to provide support. When the crisis broke out, the World Bank together with the IFC said we would together provide $150-160 billion support worldwide.  Of which about $100 billion would come from the World Bank – through IBRD/IDA. We have been successful – and together have provided about $157 billion.  Since April 2020, on the World Bank side, of the $100 billion delivered, $41 billion went to Africa and most of it was related to crisis support – not only health, but also, social protection and ensuring jobs are preserved. In this context, we made a strategic decision to frontload the IDA resources from IDA19 and use the resources in 2 years instead of 3 years, with a consequence that we have to fundraise for the next round. And that is why we are here today, to get your guidance – and while the needs of the continent go beyond IDA – it is important that every institution supporting the region does its maximum. That needs to continue in particular as we go to the longer- term recovery. Vaccines The African continent has been left out on getting access to vaccines. Only 1% of the African population has been fully vaccinated. This is completely unacceptable and it is a problem that needs to be resolved urgently. At the World Bank we have welcomed an initiative by the African Union to set a clear target of 40 percent of the population to be vaccinated by the end of this year and 60 percent by middle of next year. But we are far from reaching this.   The African Union negotiated a deal with Johnson & Johnson to get 400 million doses this year. But the financing was missing. We are partnering with the AU and have said we can finance this fully.  In fact, the World Bank has said we are willing to put $20 billion for vaccine acquisition and deployment worldwide and whatever is necessary, we are willing to finance that. If there is more money needed, we will be there. Because this is a crisis – and as long as the COVID crisis is affecting countries, economic recovery is not assured. Supporting Africa’s Recovery – long term That means we need to ensure that Africa has the means to recover not only from the pandemic, but also economically and socially. And that requires more resources – to support these programs and ensure they are fully financed. That is the reason why we started the IDA20 negotiations early, in April and we would like to finish them at the end of this year, in Japan. But IDA also focuses on the longer-term development needs as well - such as providing for inclusive and sustainable recovery.  Getting back on track to the development goals, to the SDGS, to poverty reduction. These are the ultimate test of success. As I said earlier, we are here today to listen and learn. When I was in Paris in May, along with many of you here today at the Summit hosted by President Macron, I had the occasion to meet President Ouattara.  We had a very good discussion about the challenges the Africa continent was facing.   I was grateful when he said we could organize this kind of brainstorming meeting with you. It is ultimately about getting the best possible results from IDA – and strategically, what are the key topics we will need to support in IDA20. We have right now about 40 borrower representatives, mostly from Africa, who have been articulating already important priorities for the African continent. I name only a few – jobs, private sector recovery, human capital investment, as well as digital economy – but there are many others that are important. These are topics that are fundamental to the success of IDA 20. Financing Needs We also need to make sure that the Africa continent will have the resources to carry out these development priorities. Clearly, IDA is only one actor – but we are an important one and have been successful across beneficiary countries. Just to give you a sense of the financial dimensions, we have calculated for all of the IDA countries -this is not only Africa – that there are about $700 billion in needs for the next three years. For the IDA countries, the demand is about $112 billion that was articulated by the IDA countries and 70 percent is needed for Africa.  Just to compare, when we negotiated the last IDA, we had $82 billion for IDA19. In the summit in Paris, President Ouattara mentioned $90 billion would be a good number. But we also need donor resources.  We were able to get a floor commitment of donors of $25 billion. So, the goal is not only to have $90 billion, but whether we could get to $95 or $100 billion. There your support is necessary, because behind the money will be the programs – programs for COVID response, programs for recovery, programs for long term development. Those need to be financed and are needed for your countries. While the World Bank focuses mainly on working with governments, we know that for a successful economic recovery, we will also need the private sector.  We have been supporting private sector development through the IDA private sector window that helps de-risk IFC operations but clearly more needs to be done. So any presentation of the World Bank Group would not be complete if we would not also touch upon private sector development and where our private sector arm, the IFC, could make a huge difference.  In this context, I am very happy to introduce an old friend and colleague, Makhtar Diop, with whom I have worked many years together. And now we are working together towards a resilient recovery in Africa.  The World Bank is working to get a strong IDA20, and Makhtar trying to get the strongest possible IFC program in Africa, and he will share some of his reflections now. Thank you. RELATED: Accompanying PowerPoint: WBG-Africa Partnership Getting Stronger and Promoting Recovery ","date":"2021-07-15T09:27:00Z","contenttype":"Speeches and Transcripts"},"_f8ebf0524dc231b6c4bc40b13faaa2b7d5075cf0":{"id":"f8ebf0524dc231b6c4bc40b13faaa2b7d5075cf0","title":"Remarks by World Bank Group President David Malpass at the Global Health Summit Co-Hosted by the European Commission and Italy, as Chair of the G20","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2021/05/21/remarks-by-world-bank-group-president-david-malpass-at-the-global-health-summit","descr":"Remarks by World Bank Group President David Malpass at the Global Health Summit Co-Hosted by the European Commission and Italy, as Chair of the G20","keywd":"People:david-malpass,People:world-bank-group-president","lang":{"0":{"cdata!":"English"}},"cqpath":"/content/wb-home/en/news/speech/2021/05/21/remarks-by-world-bank-group-president-david-malpass-at-the-global-health-summit","wcmsource":"cq5","content":" Excellencies, Thank you, Prime Minister Draghi, and President von der Leyen. I share the intensity and deep emotions of previous speakers in combatting the pandemic. Together, we need to find faster and more effective ways to get vaccines to people in developing countries and to plan for future health emergencies. I’d like to present the actions of the World Bank Group to tackle the pandemic and our plans to build preparedness for future health threats. I welcome your input and have been very pleased to hear the support of participants for the IDA20 replenishment, which provides a vital part of the global health platform. In the first year of the pandemic, the World Bank Group committed $108 billion to help countries respond to the health, economic, and social impacts of the pandemic. This included a record 65% surge in IBRD and IDA commitments in 2020. We’re rapidly expanding our commitments to health, climate, and Africa, while working worldwide with all stakeholders. We’ve also authorized $12 billion to help countries access and deploy vaccines, with the goal of vaccinating a billion people in developing countries. By mid-year we expect to have vaccine support operations in 50 countries with at least $4 billion committed. This week, we launched a website to make all information about our vaccination projects easily accessible in one place. The website includes the detailed vaccine financing operations in place for each country and the results of the readiness assessments conducted over the last six months. We urge countries, manufacturers, vaccine intermediaries, and on-the-ground providers to increase the transparency of their own commitments. This will facilitate fair access to vaccines, more effective financing, and the private sector investments that can expand supply. In addition to firm and binding contracts, many announced “agreements” take the form of best-efforts, letters of intent, memoranda of understanding, future funding pledges, and advance purchase options. Each can be valuable, but as Kristalina just said, as many contributions as possible should be up front – fully funded and delivered. It is vital that we match excess vaccine supplies with delivery schedules and vaccination programs that are well planned and well-funded. The countries receiving vaccines need to know which types of vaccines will arrive, when, and at what price so they can communicate with their people and prepare for a major vaccination effort. In sum, I urge countries with excess supplies to release their surplus doses as soon as possible to developing countries that have vaccination operations already in place, and I urge all of us to increase the transparency of these delivery commitments. Regarding vaccine supplies, IFC is making debt and equity investments in health projects and is helping developing countries manufacture vaccines and related supplies. As we speak today, Makhtar Diop has been meeting with potential manufacturing hubs in Africa and building partnerships with development finance agencies. We’ll be announcing positive developments on this front in the coming weeks. Looking forward, the negative impact on human capital will be deep and may last decades. Over a billion children have been out of school and 80 million children have missed out on basic childhood vaccinations. At Tuesday’s Summit on Financing of African Economies, I announced our commitment to provide $150 billion in financing for sub-Saharan Africa over the next five years, a dramatic step up on previous years. This draws heavily on contributions from IDA donors, the World Bank Group’s strong leveraging and mobilization capabilities, and the reflows from previous loans. Each year, IBRD is one of the largest contributors to IDA, substantially increasing the concessional nature of IDA funding that is vital for the poorest countries. It will take large new resources to build resilience to shocks. Many low- and middle-income countries need stronger health systems, both for their COVID-19 vaccination campaigns to succeed and to be able to manage and recover from future outbreaks. Pandemic preparedness means investments across sectors, not just in health. The COVID-19 pandemic has shown in particular that social safety nets that provide digital cash transfers are particularly valuable, adding to the resilience of food security, basic health, and education. To build preparedness, we need major investments in infrastructure, and digital connectivity – these are crucial – while maintaining our focus on the particular risks to women, girls, the poorest and most vulnerable. And with about 75% of emerging infectious diseases coming from animals, we must invest in sustainable and safe food systems. Supporting crisis preparedness and response are integral to the mission of the World Bank Group; it is one of the themes for IDA20 and crisis preparedness and response are already embedded into our IBRD operations. The World Bank Group is committed to the health agenda. By working together, we can help developing countries build the resilience they need when they face major threats to their people’s health. Thank you.","content_1000":" Excellencies, Thank you, Prime Minister Draghi, and President von der Leyen. I share the intensity and deep emotions of previous speakers in combatting the pandemic. Together, we need to find faster and more effective ways to get vaccines to people in developing countries and to plan for future health emergencies. I’d like to present the actions of the World Bank Group to tackle the pandemic and our plans to build preparedness for future health threats. I welcome your input and have been very pleased to hear the support of participants for the IDA20 replenishment, which provides a vital part of the global health platform. In the first year of the pandemic, the World Bank Group committed $108 billion to help countries respond to the health, economic, and social impacts of the pandemic. This included a record 65% surge in IBRD and IDA commitments in 2020. We’re rapidly expanding our commitments to health, climate, and Africa, while working worldwide with all stakeholders. We’ve also aut","displayconttype":"Speeches and Transcripts","originating_unit":"External and Corporate Relations - Corporate Communications, ECRCC","originating_unit_exact":"External and Corporate Relations - Corporate Communications, ECRCC","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","masterconttype":"Speeches and Transcripts","node_id":"f8ebf0524dc231b6c4bc40b13faaa2b7d5075cf0","wn_title":"Remarks by World Bank Group President David Malpass at the Global Health Summit Co-Hosted by the European Commission and Italy, as Chair of the G20","wn_desc":" Excellencies, Thank you, Prime Minister Draghi, and President von der Leyen. I share the intensity and deep emotions of previous speakers in combatting the pandemic. Together, we need to find faster and more effective ways to get vaccines to people in developing countries and to plan for future health emergencies. I’d like to present the actions of the World Bank Group to tackle the pandemic and our plans to build preparedness for future health threats. I welcome your input and have been very pleased to hear the support of participants for the IDA20 replenishment, which provides a vital part of the global health platform. In the first year of the pandemic, the World Bank Group committed $108 billion to help countries respond to the health, economic, and social impacts of the pandemic. This included a record 65% surge in IBRD and IDA commitments in 2020. We’re rapidly expanding our commitments to health, climate, and Africa, while working worldwide with all stakeholders. We’ve also authorized $12 billion to help countries access and deploy vaccines, with the goal of vaccinating a billion people in developing countries. By mid-year we expect to have vaccine support operations in 50 countries with at least $4 billion committed. This week, we launched a website to make all information about our vaccination projects easily accessible in one place. The website includes the detailed vaccine financing operations in place for each country and the results of the readiness assessments conducted over the last six months. We urge countries, manufacturers, vaccine intermediaries, and on-the-ground providers to increase the transparency of their own commitments. This will facilitate fair access to vaccines, more effective financing, and the private sector investments that can expand supply. In addition to firm and binding contracts, many announced “agreements” take the form of best-efforts, letters of intent, memoranda of understanding, future funding pledges, and advance purchase options. Each can be valuable, but as Kristalina just said, as many contributions as possible should be up front – fully funded and delivered. It is vital that we match excess vaccine supplies with delivery schedules and vaccination programs that are well planned and well-funded. The countries receiving vaccines need to know which types of vaccines will arrive, when, and at what price so they can communicate with their people and prepare for a major vaccination effort. In sum, I urge countries with excess supplies to release their surplus doses as soon as possible to developing countries that have vaccination operations already in place, and I urge all of us to increase the transparency of these delivery commitments. Regarding vaccine supplies, IFC is making debt and equity investments in health projects and is helping developing countries manufacture vaccines and related supplies. As we speak today, Makhtar Diop has been meeting with potential manufacturing hubs in Africa and building partnerships with development finance agencies. We’ll be announcing positive developments on this front in the coming weeks. Looking forward, the negative impact on human capital will be deep and may last decades. Over a billion children have been out of school and 80 million children have missed out on basic childhood vaccinations. At Tuesday’s Summit on Financing of African Economies, I announced our commitment to provide $150 billion in financing for sub-Saharan Africa over the next five years, a dramatic step up on previous years. This draws heavily on contributions from IDA donors, the World Bank Group’s strong leveraging and mobilization capabilities, and the reflows from previous loans. Each year, IBRD is one of the largest contributors to IDA, substantially increasing the concessional nature of IDA funding that is vital for the poorest countries. It will take large new resources to build resilience to shocks. Many low- and middle-income countries need stronger health systems, both for their COVID-19 vaccination campaigns to succeed and to be able to manage and recover from future outbreaks. Pandemic preparedness means investments across sectors, not just in health. The COVID-19 pandemic has shown in particular that social safety nets that provide digital cash transfers are particularly valuable, adding to the resilience of food security, basic health, and education. To build preparedness, we need major investments in infrastructure, and digital connectivity – these are crucial – while maintaining our focus on the particular risks to women, girls, the poorest and most vulnerable. And with about 75% of emerging infectious diseases coming from animals, we must invest in sustainable and safe food systems. Supporting crisis preparedness and response are integral to the mission of the World Bank Group; it is one of the themes for IDA20 and crisis preparedness and response are already embedded into our IBRD operations. The World Bank Group is committed to the health agenda. By working together, we can help developing countries build the resilience they need when they face major threats to their people’s health. Thank you.","upi":"000533456","master_date":"2021-05-21T10:10:00Z","master_date_srt":"2021-05-21T10:10:00Z","master_recent_date_srt":"2021-05-21T10:10:00Z","master_recent_date":"2021-05-21T10:10:00Z","short_description":"Remarks by World Bank Group President David Malpass at the Global Health Summit Co-Hosted by the European Commission and Italy, as Chair of the G20","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","desc":" Excellencies, Thank you, Prime Minister Draghi, and President von der Leyen. I share the intensity and deep emotions of previous speakers in combatting the pandemic. Together, we need to find faster and more effective ways to get vaccines to people in developing countries and to plan for future health emergencies. I’d like to present the actions of the World Bank Group to tackle the pandemic and our plans to build preparedness for future health threats. I welcome your input and have been very pleased to hear the support of participants for the IDA20 replenishment, which provides a vital part of the global health platform. In the first year of the pandemic, the World Bank Group committed $108 billion to help countries respond to the health, economic, and social impacts of the pandemic. This included a record 65% surge in IBRD and IDA commitments in 2020. We’re rapidly expanding our commitments to health, climate, and Africa, while working worldwide with all stakeholders. We’ve also authorized $12 billion to help countries access and deploy vaccines, with the goal of vaccinating a billion people in developing countries. By mid-year we expect to have vaccine support operations in 50 countries with at least $4 billion committed. This week, we launched a website to make all information about our vaccination projects easily accessible in one place. The website includes the detailed vaccine financing operations in place for each country and the results of the readiness assessments conducted over the last six months. We urge countries, manufacturers, vaccine intermediaries, and on-the-ground providers to increase the transparency of their own commitments. This will facilitate fair access to vaccines, more effective financing, and the private sector investments that can expand supply. In addition to firm and binding contracts, many announced “agreements” take the form of best-efforts, letters of intent, memoranda of understanding, future funding pledges, and advance purchase options. Each can be valuable, but as Kristalina just said, as many contributions as possible should be up front – fully funded and delivered. It is vital that we match excess vaccine supplies with delivery schedules and vaccination programs that are well planned and well-funded. The countries receiving vaccines need to know which types of vaccines will arrive, when, and at what price so they can communicate with their people and prepare for a major vaccination effort. In sum, I urge countries with excess supplies to release their surplus doses as soon as possible to developing countries that have vaccination operations already in place, and I urge all of us to increase the transparency of these delivery commitments. Regarding vaccine supplies, IFC is making debt and equity investments in health projects and is helping developing countries manufacture vaccines and related supplies. As we speak today, Makhtar Diop has been meeting with potential manufacturing hubs in Africa and building partnerships with development finance agencies. We’ll be announcing positive developments on this front in the coming weeks. Looking forward, the negative impact on human capital will be deep and may last decades. Over a billion children have been out of school and 80 million children have missed out on basic childhood vaccinations. At Tuesday’s Summit on Financing of African Economies, I announced our commitment to provide $150 billion in financing for sub-Saharan Africa over the next five years, a dramatic step up on previous years. This draws heavily on contributions from IDA donors, the World Bank Group’s strong leveraging and mobilization capabilities, and the reflows from previous loans. Each year, IBRD is one of the largest contributors to IDA, substantially increasing the concessional nature of IDA funding that is vital for the poorest countries. It will take large new resources to build resilience to shocks. Many low- and middle-income countries need stronger health systems, both for their COVID-19 vaccination campaigns to succeed and to be able to manage and recover from future outbreaks. Pandemic preparedness means investments across sectors, not just in health. The COVID-19 pandemic has shown in particular that social safety nets that provide digital cash transfers are particularly valuable, adding to the resilience of food security, basic health, and education. To build preparedness, we need major investments in infrastructure, and digital connectivity – these are crucial – while maintaining our focus on the particular risks to women, girls, the poorest and most vulnerable. And with about 75% of emerging infectious diseases coming from animals, we must invest in sustainable and safe food systems. Supporting crisis preparedness and response are integral to the mission of the World Bank Group; it is one of the themes for IDA20 and crisis preparedness and response are already embedded into our IBRD operations. The World Bank Group is committed to the health agenda. By working together, we can help developing countries build the resilience they need when they face major threats to their people’s health. Thank you.","date":"2021-05-21T10:10:00Z","contenttype":"Speeches and Transcripts"},"_4c49a485863f72d593c98e7829f6f3710b75a94d":{"id":"4c49a485863f72d593c98e7829f6f3710b75a94d","title":"Transcript: World Bank Group President David Malpass's Media Roundtable for Western and Central Africa","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2021/05/20/transcript-world-bank-group-president-david-malpass-regional-media-roundtable-for-western-and-central-africa","descr":"Transcript: World Bank Group President David Malpass's Media Roundtable for Western and Central Africa","keywd":"People:david-malpass,People:world-bank-group-president","lang":{"0":{"cdata!":"English"}},"cqpath":"/content/wb-home/en/news/speech/2021/05/20/transcript-world-bank-group-president-david-malpass-regional-media-roundtable-for-western-and-central-africa","wcmsource":"cq5","content":" DAVID THEIS, WORLD BANK GROUP SPOKESMAN:  Good morning, everyone.  Thanks for dialing in.  Hope you're keeping well.  I'm David Theis, the World Bank's Press Secretary.  Welcome to this call with World Bank Group President, David Malpass, who is joined by our Vice President for Western Africa, Ousmane Diagana.            Mr. Malpass will give brief highlights of his remarks to open the call, and then we will turn to your questions.  We may try to send a longer version of the remarks after the call. It looks like folks are still coming in.  Sorry.  So, if I can ask everyone to please stay on mute and, when we open up for questions, please click the \"raise hand\" button at the bottom of the participant list.  If you're on an Apple device, you'll have to click at the top.  So, again, when we open up for questions, please click the \"raise hand\" button at the bottom of the participant list; or, if you're on an Apple device, click at the top.           If you want to listen in French, please click the translation tab at the bottom of the screen; and if you want to listen in English, of course, please click English.            We have several reporters on the line and we want to make sure to get to all of you, so, please, only one question per outlet.  Thanks again for joining.            Mr. Malpass.         DAVID MALPASS, WORLD BANK GROUP PRESIDENT:  Thank you very much, David.  Let me make sure I'm not muted.  I want to say good morning to everyone.  I'm in Washington, D.C. right now, and you may be anywhere in the world in any time zone.  I am pleased to be with so many of you from West and Central Africa; and also, with Ousmane Diagana, our Vice President for the Region.  Some of you have interacted with him in the past.            I want to quickly go through several of our major undertakings.  As you know, COVID-19 has taken a toll on lives and livelihoods and economies, so it's the highest priority in the various meetings and in our work.  It's devastating the poor and the job losses are immense.  And also, the reversals in education is a giant challenge.            Over the last ten years, the World Bank Group has invested over $200 billion in Sub-Saharan Africa and, as I announced on Tuesday at the summit in Paris, in just the next five years, we intend to invest and mobilize about $150 billion in Africa to support the continent's recovery.  And a large portion of that is through grants and long-term zero interest rate loans from IDA, which provides a strong net-positive flow for Africa. We're working full speed on an ambitious IDA20 replenishment, to be concluded by December 2021, and that will be critical for the concessional financing and grants that the IDA countries in Africa need.  That gives you the context for the funding support that we're doing both for the public sectors and the private sectors through IFC in Africa.  It's an all-out effort by the World Bank to provide as much support as possible during the crisis. One of the areas of our work has been on vaccines themselves. Since the outbreak of the crisis, we have invested more than $24 billion in Africa to support health and economic recovery.  Our Board authorized $12 billion for the vaccination efforts. And as of today there have been 38 African countries that have requested support on vaccination efforts, and 18 of those from West and Central Africa. We have six projects already approved by the World Bank Board, that includes Cote d'Ivoire, The Gambia, Cabo Verde, and more are scheduled to be approved over the next few weeks, several weeks.  And so, this effort is moving along fast from the World Bank standpoint, providing financing for countries to both purchase vaccines or receive vaccines from other intermediaries, and, importantly, to distribute those vaccines to people within their countries.        Unfortunately, the supply of vaccines has been limited. The delays are deepening. The inequality, the divide that's going on in the world and is a serious problem for fragility and for people's lives and livelihoods, and I've repeatedly urged countries that expect to have excess vaccine supplies to release their excess as soon as possible to developing countries that have delivery programs in place. This is a very important connection that needs to be made week-by-week now. We're at the crisis stage. We have been--of the COVID pandemic, and there has to be a matching between the countries that have access and the countries that have delivery programs that are ready to go. I've emphasized the need for transparency on that, because one of the big gaps is in knowing who has excess vaccines, which manufacturers have deliveries available, and which countries have programs that are ready to actually put shots, put jabs in people's arms.            So, in that spirit, the World Bank yesterday launched--we launched a comprehensive online portal that provides easy access to information.  I tweeted about it this morning. I encourage everyone to click on the website and see how the vaccination programs are set up in each of the now 22 programs that we have in place, and it's going to mount week by week.  We hope to reach 50 programs by midyear, which have clear documentation, clear explanation of the connection to the deliveries in countries.            This builds on the assessments that we did earlier in the year and late last year, 140 assessments of the capacity to actually deliver vaccines. This becomes the critical path in the vaccination effort for the countries that have excess vaccines to free up their options, their control, their export limitations so that the vaccines can go to developing countries that have programs and the World Bank has active, transparent programs that reach people’s arms, and they're available now and they're transparently disclosed on the website.  And we encourage other intermediaries and other participants in the global vaccination effort to do the same in terms of transparency.            I want to turn to debt sustainability.  It also has a very important transparency aspect to it.  The contracts are burdened by collateralization, by non-disclosure clauses, and by restraints on comparable treatment as countries look to restructure their debt contracts. This is a major problem in West Africa.  And as COVID-19 persists into 2021, the debt situation will certainly deteriorate further.            Comprehensive debt solutions, we think, involve four elements which we have proposed: One is debt suspension; then, there is debt reduction; there is the resolution of debt; and there's transparency, debt transparency.  So, in all four areas, there needs to be much more progress. We supported the DSSI (Debt Service Suspension Initiative) but recognize that there was only partial--for many of the major creditors, there was only partial participation. And during 2020, and now into 2021, large profits are being withdrawn from Africa, even during the crisis, and there's no real prospect for cancellation of those debts.      One of the themes of the Paris Conference two days ago, on Tuesday, was the call by African heads of state for cancellation of debts, but that's not the direction that the world is moving at this point.  A permanent solution is necessary for this overhang of debt stocks for countries that have unsustainable debt levels.  World Bank is working closely with the IMF to try to implement the G-20 Common Framework for debt reduction. The success of that hinges on full participation by the private sector, and also improvements in debt transparency. The full private sector participation is an essential part of any path to lasting debt sustainability. Let me give you some examples: It's not sufficient that Chad or Ethiopia, which have asked for Common Framework treatment--merely for them to seek comparable treatment from private creditors. The private creditors themselves must do their fair share and deliver debt relief in a timely manner and on fully comparable terms to official bilateral creditors. That process is underway, but it has moved very slowly and it means continuing burden of unsustainable debt on countries within Africa.            The private creditors need to recognize that a successful debt restructuring is a beneficial outcome for all parties involved. It brings relief to the people of the country, as we are trying to do in Chad, and it also benefits the private sector, because it limits their losses compared to a scenario of outright default. In the longer term, we want, the World Bank and the countries of Africa are working to try to have a stable and thriving economic growth prospect for the people of Africa and the business opportunities that are available there. But without the private creditors fully on board, the Common Framework won't be able to provide sustainable solutions for Chad, Ethiopia, or Zambia, the three countries that have asked for Common Framework treatment.            I wanted to go through that in some detail because we're at an important turning point in the Common Framework and we are urgently trying to implement it successfully so that we can have sustainability in debt. This builds on very strong World Bank financing, including to Chad. Over the next decade, the World Bank plans to put as much as $1.4 billion into Chad. This will strengthen Chad's ability to sustain a moderate debt burden, if that can be achieved.  That's the overall goal, to bring Chad to a moderate debt level. But so far, the participation by creditors has been limited and we're working on that in detail.   I want to also mention, and I'm happy to take questions on these areas--but I want to mention climate change.  This is a critical part of the World Bank efforts. We are working with countries to strengthen their capacity to absorb and adapt and transform their systems in response to climate change. We've announced the elements of our climate change action plan.     These include--and importantly, we want to integrate climate and development so it works for the people of the countries.  We want to have actual results in terms of successful adaptation and successful mitigation efforts within the climate sphere. There needs to be electricity access, and so that means growth in the production of electricity, but in ways that are cleaner and that are lower carbon emitting as we go along.  That's a major effort underway and the elements have been announced and we'll be releasing the plan itself and also participating actively in countries' Nationally Determined Contributions, the NDCs that are part of the Paris Agreement, as we, the World Bank, work to align our financing with the Paris Agreement.  And we're also participating actively in the runup to COP26.            I wanted to mention also, and I'm sorry to be so brief on very important issues, the work that we're doing on Fragile, Conflict, and Violent states. Eleven of the 22 countries in the West Africa Region are now affected by FCV, and more than 70 percent of the population live in FCV countries. We're scaling up our financial aid to the G-5, the Sahel countries: Burkina Faso, Chad, Mali, Mauritania, and Niger through IDA to support the conflict prevention and also the resilience and emergency responses that are needed. Our aid to those five, we expect to reach $8.5 billion for the fiscal years 2021, 2022, and 2023. So, that is starting now for the next two or so--little more than two calendar years from now.  Let me conclude, very nice to be with you today. We know that the road to recovery will be a long one.  The countries in the Region have applied lessons from previous crises, such as the Ebola outbreak in 2014. Many countries have strengthened their social safety nets to help protect the poor, and the World Bank is working actively--World Bank Group is working actively on those efforts and we think those are important preparations for future crises and the ability to get money to people during a crisis is a critical part of preparation.            And we want to also move faster on the key reforms that each of the countries is facing that will help draw in new investment. That gives you some description of the expanse of our work and I look forward to your questions.            Thanks.            MR. THEIS:  Thanks very much. I see we have some questions in the queue already. Just as a reminder to attendees on the line that, if you do want to ask a question, you click the \"raise hand\" button at the bottom of the participant list, unless you're on an Apple device, in which case it will be at the top.            And I see our first question has come in from Obinna Chima from ThisDay Nigeria. Obinna, over to you, please, unmute.       MR. CHIMA:  Thank you, thank you.  Mr. President, thank you for this opportunity.           I would like to know, in 2020, Nigeria requested for a 3-billion-naira loan from the World Bank. We were able to get 1.5 billion. How soon are we expecting the balance of 1.5 and--or is there any change, delay, in the payment of that 1.5 billion? Thank you.            MR. MALPASS:  Thanks.  And I'm going to turn to Ousmane, as well, but I wanted to say one thing, which is Nigeria has huge potential. And with some of the improvements in the economic policies, the growth can be rapid for people across Nigeria. We've encouraged efforts that would reduce the subsidies for fossil fuels, that would encourage trade across borders, where Nigeria could be doing more in that area.            And very importantly, the multiple exchange rates has been a burden on the people of Nigeria, and we've encouraged the elimination of the official rates and the unification of rates so that money and investment and remittances can flow in and out of Nigeria with less friction. Our program remains strongly supportive of the people of Nigeria and of Nigeria.            Let me turn to Ousmane for some specifics on Nigeria.            OUSMANE DIAGANA, WORLD BANK VICE PRESIDENT FOR WEST AND CENTRAL AFRICA: Thank you very much, David.           As we speak, we have probably the largest portfolio of the World Bank in Nigeria. More than $12 billion.  Those are programs under implementation covering a variety of sectors, access to electricity, water, education, health, agriculture.       Especially for this year, indeed, we have prepared a pipeline--we had a pipeline of a number of programs and we have delivered about $2 billion for Nigeria in order to help the population have access to critical services but also to support governments and institutions to provide some technical assistance to a variety of stakeholders.            The conversation of when [audio distortion] Nigeria continues around some of the critical reforms that I think Nigeria has been waiting for some time. And we have seen progress and producing the [audio distortion] will continue in Nigeria as a very important partner for the Bank and also the role that it plays in Africa clearly--we make any investment in Nigeria will have also some positive externalities for African countries.            Thank you.           MR. MALPASS:  Yeah, can I underscore that last point of Ousmane's, as well, that throughout Africa, if one of the major economies can do well, it has very positive synergy with its neighbors, and that's one of our primary goals, to have successful economies that then bring synergy with neighbors, because that's a way that there can be massive progress in Africa.            MR. THEIS:  Thank you.            Calling next, Nuno Ferreira.  Nuno, go ahead, please.            MR. FERREIRA:  Hello, good afternoon.  I would like to ask you a question about the meeting in Paris earlier this week. The term \"lost decade\" was used by some political leaders. Do you believe that we are in danger of having a lost decade in Africa?  And what can we do to avoid it, or what debt relief will have to do with the solution?            MR. MALPASS:  Yeah, thank you. Well, COVID itself was a historically large setback, and it was particularly harmful for people--for the poorest and most vulnerable. And so, from that standpoint, we recognize that it will take years to claw back some of the losses.           I mentioned earlier the education system.  By having the advanced economies close down, and then the education systems--often, schools closed--children weren't able to move forward, and that's a critical part of the future of every country, and especially in Africa with the youth.            So, we're working very hard to avoid a lost decade; I want to say that. And I think there are still pathways forward in order to avoid having all of the setbacks extend in Africa. I want to give some specifics on that.            One is from the vaccination effort. We have to get vaccination started in more countries, and that means getting the supply, and that means those countries with excess releasing the supply. And that means using programs that are ready, that are on the shelf, that are on websites, and fully disclosed as the World Bank programs are, to get vaccinations to people across their countries. That's a key starting point.            And then, I wanted to say a second vital area is on debt. Oftentimes, the term \"lost decade\" is applied to Latin America, and I worked throughout the 1980s on the Latin debt crisis. And we're trying hard to avoid the situation that occurred in that crisis where, year after year, the debts were rescheduled, they were pushed forward into the future, but never actually reduced. And so, the new investment couldn't come in because they realized that they were going to end up be used to pay previously contracted debt. There needs to be a mechanism for those countries in Africa that have unsustainable debt burdens, for them to have actual debt reduction, debt relief.            And that's what we're working on with--that's what we're trying to do with my call a year ago--over a year ago--was for a debt moratorium. The G-20 put forward the debt suspension initiative, which delayed the payments but kept the interest rates compounding on that debt. And now, we have the Common Framework, where it faces the obstacles from the debt being--much of the key debt being collateralized, being nondisclosed as far as the contracts, and these are obstacles to successful debt restructuring and raises the concern or the possibility of a lost decade; so, we're working on that.            And then third, and my final point, is on the economic advancements themselves. Many countries have key things that they could be doing in terms of digitalization, in terms of trade facilitation, in terms of unification of exchange rates, in terms of the business climate being improved, in terms of infrastructure, which is so vital. All of those things could be done more.      And I would like to cite Sudan.  We are making progress in Sudan.  And you know on Monday there was a major conference in Paris on the progress on Sudan. We were able to clear our arrears, then the African Development Bank's arrears. And now, the IMF's arrears are on track to being cleared.  And that enables the international system to help Sudan. And then, in order to accomplish that, Sudan was taking very important steps to help itself through the unification of the exchange rate and other reforms that are really working.           I encourage each country to work to avoid the last decade that is still a risk for the continent.            MR. THEIS:  Thank you.            I see our next question is from Abdou Diaw of Senegal. Abdou, over to you.            MR. DIAW:  Hello, everyone. Thank you for the invitation. Just to add one question.            MR. THEIS:  Go ahead.            MR. DIAW:  [Through interpretation] During the summit, the President of Senegal, Macky Sall, asked developed countries to release their vaccines to other countries and to work with institutions such as the World Bank. What do you think of what Macky Sall said during the conference? Thank you.            MR. MALPASS:  He and other leaders were very effective at the conference on Tuesday in expressing visions and goals. I know Senegal has been an integral part of finding solutions to problems and moving forward and is involved already in the vaccination effort.       Makhtar Diop, our Managing Director of the IFC, the World Bank private sector arm, was meeting with President Macky Sall on Tuesday.  We're encouraged by the vaccination possibilities--the possibilities for vaccination supplies to be increased through production in Africa, of various components of the vaccines and various parts of the vaccination operations.            So, World Bank Group is encouraged by the progress and very engaged in the financing and operations that will help. MR. THEIS:  Excellent.  Working on an honor system here, I see the next question comes from an iPhone. So, I'm simply going to presume that you're a reporter and go ahead, please. And if you could identify yourself and your outlet, please. [Pause] If not, we'll move on to the next question, which--go ahead, please, yes.              MR. RODNEY SIEH:  Yeah, my name is Rodney Sieh.  I'm Editor, FrontPage Africa, in Liberia.            Recently, the World Bank received--approved financing for Liberia in terms of increased access to sustainable roads and reliable energy projects.  But most people are concerned about the fact that there aren't enough help for private sector investment.  Is there any plan--are any plans for that for the World Bank?           And also, the issue of vaccines, Africa has a lot of issues with temperature and stuff.  We are concerned people are not taking the vaccine because of the issues regarding whether the storage issues are being resolved.  Are there any concerns that the World Bank will help in that area?            MR. MALPASS:  Thanks.  I'll give--briefly, and then I'll turn to Ousmane, as well.            On the private sector, we're strongly supporting the details of private sector development. That means trade finance, for example, which had fallen off the cliff as a result of the COVID-19 pandemic.  IFC has doubled its support for trade finance.  And then, also, small business finance is a critical part of it and also the overall business climate.  So, I will turn to Ousmane on that.            And with regard to the vaccination effort, we are very aware of the individual constraints by various countries.  I mentioned in my opening that we'd done assessments of 140 countries, including Liberia, as far as what the preparation is for various kinds of vaccines.           So, if you look at our website that just went up yesterday, it shows the project documents for various countries and it gives details about the needed support in various parts of the supply chain.  We recognize that as important that the--that individual vaccines are provided to countries that can use different--countries will want different kinds of vaccines for their own situation.            For example, a country may want some vaccines that need deep cold storage for their urban areas; but then, may want a different vaccine for rural areas. That's comprehended--that's part of our programs and it's an important part of the delivery effort for the vaccination effort.            Let me turn to Ousmane.            MR. DIAGANA:  Thank you very much, David.            Liberia, the Bank is one of the very few donor agencies very, very active in Liberia. Most in terms of our field presence, we have significantly increased our footprint in Liberia.  We have today about 25 staff, composed of experts in variety of areas.  But also, in terms of financial assistance, our portfolio in Liberia is more than $400 million.  No later than yesterday, I have chaired a decision meeting on a vaccine project that will go to our Board before the end of fiscal year.  We have prepared a new project on the electricity sector.  And we have also a budget support operation going to the Board in middle of June.  Particularly very, very important for Liberia is the need to continue to push for reform that will allow the private sector to come in and to invest in a company [audio distortion] and indeed, the budget support operation that we have just prepared include a variety of reform area that certainly will improve the climate investment for Liberia.       Thank you.            MR. MALPASS:  Can I add one point on that, and a reminder to people that many countries in Africa benefitted from the debt reduction effort, the HIPC, Highly Indebted Poor Country, effort that was done early in the 2000s, in Liberia included.  Now, Sudan is moving toward the decision point.  Somalia has benefited in the most recent.            But this effort, I want to underscore the importance of having a successful debt relief effort for the highly indebted--for countries that have unsustainable debt burdens.  That was an important part of Africa's growth in the early part of this century, meaning in 2002 through 2008.  Debt reduction provided the basis for new investment and for recovery, including in Liberia.            Thanks. David.            MR. THEIS:  Thank you very much.  The next question I see comes from a participant, 442-2600.  Please identify yourself and your outlet and go ahead, please.            MR. TAO:  [Through interpretation] Good morning.            INTERPRETER:  The interpreter apologizes, but we cannot hear anything.  There is an echo.            [Technical difficulties]            MR. THEIS:  Sorry we have an echo on your line. We are not able to hear your question. I apologize. I can try and come back to you or you can send your question in the chat, please. But in the meantime, I'm going to turn to George Wiafe. George, go ahead.            MR. WIAFE:  Can you hear me, Mr. President?            MR. THEIS:  Yes, George.  Thank you.            MR. WIAFE:  My question is, you talked about how the pandemic has escalated the debts of [audio distortion] Ghana.  In the case of Ghana, what is the policy recommendation to help deal with our rising debt stock in terms of something that has gotten to threatening levels?  Are there any proposed policy recommendations for Ghana to help deal with our rising debt stock going forward, sir?           MR. MALPASS:  Yeah, thank you.  One issue is to try to hold down the non-concessional debt that is being taken on, and non-concessional means higher interest rate debt, because that burdens the future generations.            Another important step is the transparency of both the debt that's taken on and the investment projects that might be funded by that debt.  These are big challenges.  Also, working closely with World Bank and IMF as we both look to have countries have sustainable debt burdens rather than unsustainable debt burdens.           Let me turn to Ousmane for more on Ghana.            [Pause]           MR. THEIS:  Ousmane, are you coming in?            MR. DIAGANA:  No, thank you very much, David.           Just to supplement what David has said, in fact, Ghana's geographical position and reform has proceed over the last couple of years.  Of course, placed it in a very unique situation also in Africa.             I think we have a good dialogue with Ghanaian authorities.  We are preparing a new Country Partnership Framework in Ghana with the new government put in place, and we are also using a very inclusive approach in order to make sure that the private sector and the civil society will be part of the dialogue that will lead to preparing of [audio distortion] a new strategy.  It is clearly very critical to push in order to make sure that the depth of policy will be conceived for better investment and better results for Ghanaian population.            And also, I think the poverty reduction agenda in Ghana has made some progress.  This also has to be also be sustained.  I think the principle that David has already mentioned regarding how debt should be managed will be critical in that regard. MR. MALPASS:  And as we think about debt for countries, the world has seen a major reduction in interest rates, into zero or even negative for some of the borrowers; whereas, for some borrowers in Africa, the interest rates are still high.  So, one of the questions to creditors and to potential lenders is, are there ways to have much lower interest rates for debt as it is rolled over in Africa.            The World Bank is working in particular to have concessional debt levels and also to have grants and zero interest rate loans through IDA, as sources of financing for countries, in general.  And that's a high priority, to try to find light at the end of the tunnel so that the people of Africa are not constantly under the burden of unsustainable debt.            MR. THEIS:  Thank you.  I'm going to try the guest, 442-2600 one more time just to see if we can get rid of that echo.  Please identify yourself and your outlet.  Yes.           MR. ABDOULAYE:  [Through interpretation] Good morning. It is Tao Abdoulaye from Burkina Faso, The Economist.           My question relates to the supply of vaccine for African countries.  It seems that the Bank already had a plan to help African countries, but what did the Paris Summit change?  Because we're talking about multilateral initiatives, so what about that?  Thank you.            MR. MALPASS:  Yeah, thank you.  Well, there was clearly the recognition at the Paris meeting that vaccines were at the top of the list of concerns by the leaders of Africa.           One of the challenges has been to achieve more transparency in terms of what the manufacturers are able to produce, and what the constraints are on those manufacturers in terms of getting their product to developing countries.  In many cases, this means the options that some governments have, even if they may have sufficient supply, they're retaining options which constrain the delivery of vaccines to the developing countries.            That clarity of transparency is what the World Bank is calling for today with the release of our website showing very clearly the documents and the documentation of our programs, and we encourage others, including the intermediaries, the manufacturers, and the countries that are controlling the manufacturing, to release more information about the constraints on that supply.            For Burkina Faso, I think the questions are, what contracts do they have to get vaccines; who is on the other side of that contract; were those contracts signed; and does the other side of the contractactually have the prospect of delivering vaccines to Burkina Faso?  These are some of the unanswered questions in the international sphere. World Bank Group has a massive effort underway to encourage the transparency of other parties within the vaccination effort to be more transparent in their available supply and in their commitments.  How much have they committed to Burkina Faso?  What are the delivery schedules that they envision?            Thank you.            MR. THEIS:  Thank you.  And we had a reporter, Alonso Soto, from Bloomberg, wasn't able to raise his hand but is next in the queue.  Alonso, go ahead, please.           Alonso?           MR. SOTO:  Yeah, can you guys hear me?            MR. THEIS:  Yes, thank you.           MR. SOTO:  Great.  Mr. Malpass, you have talked a lot about Chad and about how key it is for private creditors to participate in the debt problems of that country, or the debt renegotiation.            I wanted to ask you if Glencore and the syndicate of lenders should have to renegotiate their oil-for-cash loan with Chad and take a haircut, if you think that is necessary, that is needed.  And also, if Glencore and the syndicate of lenders should be included in the common framework talks in Chad.            MR. MALPASS:  Short answer is, yes and yes.            So, by far, the biggest amount of reschedulable debt is with Glencore and very important to engage in that debt sustainability effort for Chad.  And as I mentioned in my remarks, the World Bank continues to put large flows in--has been and will be putting large flows to the people of Chad.  And so, there's benefit in the creditors working with the development community and with Chad, with the Government of Chad, on sustainable solutions.            Thank you.            MR. THEIS:  Thank you.            Abdoulaye Tao, can you come in next?            MR. ABDOULAYE:  [Through interpretation] I've already asked my question.            MR. THEIS:  Oh, thank you very much.            Next, I think we have Thierno Camara from Guinea.  Thierno.            MR. THIERNO CAMARA:  [Through interpretation] Can you hear me?            MR. THEIS:  We're trying to.  Go ahead, Thierno.            [Technical difficulties]           MR. CAMARA:  [Through interpretation]  So, I was saying that I'd like to thank you for this opportunity to meet with you today and to give us all these details about your efforts. I'd like to ask about the Guinean economy and it's becoming more resilient and we're improving our resiliency, despite the fact that we're having difficulty mobilizing resources and we have been able to increase our efforts over recent years to sign contracts for funding.  But today, we are looking at issues such as the increasing cost of gas, which is another outcome related to COVID that are having an impact on our economy.  And so, we're wondering what other efforts the Bank will making in terms of helping us with this. Thank you.            MR. MALPASS:  Okay.  Thank you.  I'm turning to Ousmane on this.            MR. THEIS:  And Ousmane, I think you're in the French channel right now.  If you could make sure that you switch to the English channel.  They will interpret for you, but just please make sure that on the screen that you're on French--on English, excuse me.  Thank you.            MR. DIAGANA:  [Through interpretation] Let me answer the question from our friend in Guinea in French.           I think that Guinea has been making significant progress in the recent year, but there is still strong dependence on extractive resources, particularly in the mining sector, which means that unification of the economy, the Guinean economy, which is indispensable in order to consolidate progress in eradicating poverty.  But it's also important to have a lot more investment so that the economy can create more jobs and this is also necessary to generate more revenue.            This is one of the most important things that has to be done.  In Guinea, there's a huge potential in terms of electricity production and supply, but there's a disconnect, a very serious disconnect, and I think we need to make more efforts--and the World Bank is working on this--with Guinea.  When I say \"World Bank\" I really mean the World Bank Group.  The World Bank Group, IFC, and MIGA are working on a number of programs.  We are having very good dialogue with the authorities to discuss partnerships that we can put into place to frame our future initiatives in terms of reforms and investments to help finance initiatives in Guinea from the World Bank Group.            Thank you.            MR. THEIS:  Thank you.  I see the next question in the chat, from Claude Plagbeto, of Benin:  \"The World Bank is now in the forefront of financing energy projects in West Africa; however, there is a strong trend toward the promotion of thermal power plants, with implications in terms of production costs and pollution.  What is the World Bank's interpretation of this race for thermal energy, given its growing interest in climate change issues?  Thank you.\"            MR. MALPASS:  Yeah, thank you.  That's a good question.  Regions of the world need to think about where they're going to get electricity access, and do it in a way that has the lower carbon output.            And what has been happening, and this may be a reference from the questioner, is, as the demands go up rapidly, the fastest way is with techniques that are carbon-intensive, which is the opposite of where the world would like to go.  The World Bank wants to work with countries on their long-term strategy, meaning, where will they get the growth in electricity access that they need?  And what are the lower-carbon sources of energy that are available?  This might be hydro; it might be natural gas; it might be improvements in the transmission grid that save electricity and allow more renewables to be brought on stream.            We have solar projects in many of the countries that are successful at bringing low-cost, clean energy to the countries, but they also need the expansion of baseload in the city areas.  These are all parts of our climate change action plan that are important in moving this along.           One other thing that we mentioned in the elements of our Climate Change Action Plan is the importance of countries reducing the subsidies that they apply for fossil fuels.  That often takes the form of subsidies to the electricity generation facilities that give them fossil fuel energy at a lower cost than the market cost or than the full cost to the world. So, we're working on all of those through IDA, through IBRD, and also very much by trying to encourage countries to align their development practices--I mean, their development goals, which certainly include clean energy for the health--you know, in urban areas, they're clogged with the output, the emissions, from thermal plants.            Ousmane, more to add there?            MR. DIAGANA:  [Through interpretation]  No, David.  I think you've covered everything on that point.  Thank you.  Thanks.  MR. THEIS:  Thanks very much.  Next question coming from Central African Republic, and I'll read it from the chat.  We've got it translated from French:           \"In addition to the health crisis that's led to a slowdown in growth, there is a security crisis with the involvement of several regional international actors, which has consequences for vital sectors of the economy.  Under these conditions, how can the World Bank help the Central African Republic?  Thank you.\"            MR. MALPASS:  Yeah, yeah.  This is a grave challenge.  I mentioned in my opening remarks the G5, the challenge for the Sahel.  And as we look at CAR, it and its neighbors face immense challenges from security issues.           As the World Bank, we strongly support development that creates jobs for people, a starting point for stability is jobs, and that's a major part of our efforts.  Also, where there is fragility, we can meet some of the needs by improving food security issues.  Those are important.  And we can work with the governments to have stronger governance structures that improve the stability of the countries.            And I need to mention also vaccinations as an important part of the one-, two-, and three-year time horizon for trying to find economic growth and stability.            Ousmane, more on that or on the constraints?           MR. DIAGANA:  [Through interpretation] Yes, thank you, David.            Perhaps I would just add that, in addition to the health crisis, which has been an endogenous shock, especially with the context of COVID-19 which has really aggravated other factors in countries such as CAR, such as the security issues.  And so, we need to invest more to strengthen the health systems and, consequently, help build resiliency, and this is a priority for the Bank.  So, we will be working on this with the Central African Republic.           Now, with respect to the security crisis itself, this is a consequence of inequalities and exclusion, which really creates a breeding ground for this type of activity.  So, it's extremely important in this area, as well, to create initiatives in terms of reforms, but also investment that will be distributed equally geographically and that will also enable us to help correct some of the structural difficulties that we are seeing in countries such as CAR and the new strategy that we will be working on with Central African Republic will focus on putting into place milestones so that agreements that Central African authorities will sign with different international partners will actually be implemented to help CAR make progress.  And the new financing that we will be providing for CAR will depend on the progress that is made in terms of achieving these milestones and indicators that will be decided by the authorities and with the international community.            Thank you.            MR. THEIS:  Thank you very much.            And this will conclude our press conference for today.  David or Ousmane, do you have any closing remarks before we end?  Thank you.            MR. MALPASS:  Thank you.  Thanks everybody, for good questions.  As you can see, we are very interested in the specific country progress that's being made.  That's where a huge amount of World Bank efforts are underway.            I do want to say to--a little bit repetitive--vaccinations are very important and it's important to have programs in place and to have the contracting be transparent; we're working on that.            With regard to debt, it's important that we recognize that some countries have unsustainable debt.  The G-20 has been very clear that it expects private sector creditors to participate, and that was the context of the discussion of Chad.  That's part of the Common Framework.            And with regard to climate, and I was happy that the questions came up on climate, both adaptation and mitigation are very important for many of the IDA countries. The high priority is to be prepared for changes in climate as they occur, and we're working with countries on their plans for that.            To conclude, really, the World Bank Group is heavily engaged country-by-country in Africa in looking for progress at the country level, at the subregional level across borders, as a key part of the strategy or the future to provide jobs, to provide growth, to provide better living standards, access to electricity, to clean water, to health, to education, to vaccines, all of the things that are vital for people's lives.            Thank you very much for joining, today.           MR. THEIS:  Thanks, everyone.  And this concludes our press conference for today.  Thank you all.","content_1000":" DAVID THEIS, WORLD BANK GROUP SPOKESMAN:  Good morning, everyone.  Thanks for dialing in.  Hope you're keeping well.  I'm David Theis, the World Bank's Press Secretary.  Welcome to this call with World Bank Group President, David Malpass, who is joined by our Vice President for Western Africa, Ousmane Diagana.            Mr. Malpass will give brief highlights of his remarks to open the call, and then we will turn to your questions.  We may try to send a longer version of the remarks after the call. It looks like folks are still coming in.  Sorry.  So, if I can ask everyone to please stay on mute and, when we open up for questions, please click the \"raise hand\" button at the bottom of the participant list.  If you're on an Apple device, you'll have to click at the top.  So, again, when we open up for questions, please click the \"raise hand\" button at the bottom of the participant list; or, if you're on an A","displayconttype":"Speeches and Transcripts","originating_unit":"External and Corporate Relations - Corporate Communications, ECRCC","originating_unit_exact":"External and Corporate Relations - Corporate Communications, ECRCC","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","masterconttype":"Speeches and Transcripts","node_id":"4c49a485863f72d593c98e7829f6f3710b75a94d","wn_title":"Transcript: World Bank Group President David Malpass's Media Roundtable for Western and Central Africa","wn_desc":" DAVID THEIS, WORLD BANK GROUP SPOKESMAN:  Good morning, everyone.  Thanks for dialing in.  Hope you're keeping well.  I'm David Theis, the World Bank's Press Secretary.  Welcome to this call with World Bank Group President, David Malpass, who is joined by our Vice President for Western Africa, Ousmane Diagana.            Mr. Malpass will give brief highlights of his remarks to open the call, and then we will turn to your questions.  We may try to send a longer version of the remarks after the call. It looks like folks are still coming in.  Sorry.  So, if I can ask everyone to please stay on mute and, when we open up for questions, please click the \"raise hand\" button at the bottom of the participant list.  If you're on an Apple device, you'll have to click at the top.  So, again, when we open up for questions, please click the \"raise hand\" button at the bottom of the participant list; or, if you're on an Apple device, click at the top.           If you want to listen in French, please click the translation tab at the bottom of the screen; and if you want to listen in English, of course, please click English.            We have several reporters on the line and we want to make sure to get to all of you, so, please, only one question per outlet.  Thanks again for joining.            Mr. Malpass.         DAVID MALPASS, WORLD BANK GROUP PRESIDENT:  Thank you very much, David.  Let me make sure I'm not muted.  I want to say good morning to everyone.  I'm in Washington, D.C. right now, and you may be anywhere in the world in any time zone.  I am pleased to be with so many of you from West and Central Africa; and also, with Ousmane Diagana, our Vice President for the Region.  Some of you have interacted with him in the past.            I want to quickly go through several of our major undertakings.  As you know, COVID-19 has taken a toll on lives and livelihoods and economies, so it's the highest priority in the various meetings and in our work.  It's devastating the poor and the job losses are immense.  And also, the reversals in education is a giant challenge.            Over the last ten years, the World Bank Group has invested over $200 billion in Sub-Saharan Africa and, as I announced on Tuesday at the summit in Paris, in just the next five years, we intend to invest and mobilize about $150 billion in Africa to support the continent's recovery.  And a large portion of that is through grants and long-term zero interest rate loans from IDA, which provides a strong net-positive flow for Africa. We're working full speed on an ambitious IDA20 replenishment, to be concluded by December 2021, and that will be critical for the concessional financing and grants that the IDA countries in Africa need.  That gives you the context for the funding support that we're doing both for the public sectors and the private sectors through IFC in Africa.  It's an all-out effort by the World Bank to provide as much support as possible during the crisis. One of the areas of our work has been on vaccines themselves. Since the outbreak of the crisis, we have invested more than $24 billion in Africa to support health and economic recovery.  Our Board authorized $12 billion for the vaccination efforts. And as of today there have been 38 African countries that have requested support on vaccination efforts, and 18 of those from West and Central Africa. We have six projects already approved by the World Bank Board, that includes Cote d'Ivoire, The Gambia, Cabo Verde, and more are scheduled to be approved over the next few weeks, several weeks.  And so, this effort is moving along fast from the World Bank standpoint, providing financing for countries to both purchase vaccines or receive vaccines from other intermediaries, and, importantly, to distribute those vaccines to people within their countries.        Unfortunately, the supply of vaccines has been limited. The delays are deepening. The inequality, the divide that's going on in the world and is a serious problem for fragility and for people's lives and livelihoods, and I've repeatedly urged countries that expect to have excess vaccine supplies to release their excess as soon as possible to developing countries that have delivery programs in place. This is a very important connection that needs to be made week-by-week now. We're at the crisis stage. We have been--of the COVID pandemic, and there has to be a matching between the countries that have access and the countries that have delivery programs that are ready to go. I've emphasized the need for transparency on that, because one of the big gaps is in knowing who has excess vaccines, which manufacturers have deliveries available, and which countries have programs that are ready to actually put shots, put jabs in people's arms.            So, in that spirit, the World Bank yesterday launched--we launched a comprehensive online portal that provides easy access to information.  I tweeted about it this morning. I encourage everyone to click on the website and see how the vaccination programs are set up in each of the now 22 programs that we have in place, and it's going to mount week by week.  We hope to reach 50 programs by midyear, which have clear documentation, clear explanation of the connection to the deliveries in countries.            This builds on the assessments that we did earlier in the year and late last year, 140 assessments of the capacity to actually deliver vaccines. This becomes the critical path in the vaccination effort for the countries that have excess vaccines to free up their options, their control, their export limitations so that the vaccines can go to developing countries that have programs and the World Bank has active, transparent programs that reach people’s arms, and they're available now and they're transparently disclosed on the website.  And we encourage other intermediaries and other participants in the global vaccination effort to do the same in terms of transparency.            I want to turn to debt sustainability.  It also has a very important transparency aspect to it.  The contracts are burdened by collateralization, by non-disclosure clauses, and by restraints on comparable treatment as countries look to restructure their debt contracts. This is a major problem in West Africa.  And as COVID-19 persists into 2021, the debt situation will certainly deteriorate further.            Comprehensive debt solutions, we think, involve four elements which we have proposed: One is debt suspension; then, there is debt reduction; there is the resolution of debt; and there's transparency, debt transparency.  So, in all four areas, there needs to be much more progress. We supported the DSSI (Debt Service Suspension Initiative) but recognize that there was only partial--for many of the major creditors, there was only partial participation. And during 2020, and now into 2021, large profits are being withdrawn from Africa, even during the crisis, and there's no real prospect for cancellation of those debts.      One of the themes of the Paris Conference two days ago, on Tuesday, was the call by African heads of state for cancellation of debts, but that's not the direction that the world is moving at this point.  A permanent solution is necessary for this overhang of debt stocks for countries that have unsustainable debt levels.  World Bank is working closely with the IMF to try to implement the G-20 Common Framework for debt reduction. The success of that hinges on full participation by the private sector, and also improvements in debt transparency. The full private sector participation is an essential part of any path to lasting debt sustainability. Let me give you some examples: It's not sufficient that Chad or Ethiopia, which have asked for Common Framework treatment--merely for them to seek comparable treatment from private creditors. The private creditors themselves must do their fair share and deliver debt relief in a timely manner and on fully comparable terms to official bilateral creditors. That process is underway, but it has moved very slowly and it means continuing burden of unsustainable debt on countries within Africa.            The private creditors need to recognize that a successful debt restructuring is a beneficial outcome for all parties involved. It brings relief to the people of the country, as we are trying to do in Chad, and it also benefits the private sector, because it limits their losses compared to a scenario of outright default. In the longer term, we want, the World Bank and the countries of Africa are working to try to have a stable and thriving economic growth prospect for the people of Africa and the business opportunities that are available there. But without the private creditors fully on board, the Common Framework won't be able to provide sustainable solutions for Chad, Ethiopia, or Zambia, the three countries that have asked for Common Framework treatment.            I wanted to go through that in some detail because we're at an important turning point in the Common Framework and we are urgently trying to implement it successfully so that we can have sustainability in debt. This builds on very strong World Bank financing, including to Chad. Over the next decade, the World Bank plans to put as much as $1.4 billion into Chad. This will strengthen Chad's ability to sustain a moderate debt burden, if that can be achieved.  That's the overall goal, to bring Chad to a moderate debt level. But so far, the participation by creditors has been limited and we're working on that in detail.   I want to also mention, and I'm happy to take questions on these areas--but I want to mention climate change.  This is a critical part of the World Bank efforts. We are working with countries to strengthen their capacity to absorb and adapt and transform their systems in response to climate change. We've announced the elements of our climate change action plan.     These include--and importantly, we want to integrate climate and development so it works for the people of the countries.  We want to have actual results in terms of successful adaptation and successful mitigation efforts within the climate sphere. There needs to be electricity access, and so that means growth in the production of electricity, but in ways that are cleaner and that are lower carbon emitting as we go along.  That's a major effort underway and the elements have been announced and we'll be releasing the plan itself and also participating actively in countries' Nationally Determined Contributions, the NDCs that are part of the Paris Agreement, as we, the World Bank, work to align our financing with the Paris Agreement.  And we're also participating actively in the runup to COP26.            I wanted to mention also, and I'm sorry to be so brief on very important issues, the work that we're doing on Fragile, Conflict, and Violent states. Eleven of the 22 countries in the West Africa Region are now affected by FCV, and more than 70 percent of the population live in FCV countries. We're scaling up our financial aid to the G-5, the Sahel countries: Burkina Faso, Chad, Mali, Mauritania, and Niger through IDA to support the conflict prevention and also the resilience and emergency responses that are needed. Our aid to those five, we expect to reach $8.5 billion for the fiscal years 2021, 2022, and 2023. So, that is starting now for the next two or so--little more than two calendar years from now.  Let me conclude, very nice to be with you today. We know that the road to recovery will be a long one.  The countries in the Region have applied lessons from previous crises, such as the Ebola outbreak in 2014. Many countries have strengthened their social safety nets to help protect the poor, and the World Bank is working actively--World Bank Group is working actively on those efforts and we think those are important preparations for future crises and the ability to get money to people during a crisis is a critical part of preparation.            And we want to also move faster on the key reforms that each of the countries is facing that will help draw in new investment. That gives you some description of the expanse of our work and I look forward to your questions.            Thanks.            MR. THEIS:  Thanks very much. I see we have some questions in the queue already. Just as a reminder to attendees on the line that, if you do want to ask a question, you click the \"raise hand\" button at the bottom of the participant list, unless you're on an Apple device, in which case it will be at the top.            And I see our first question has come in from Obinna Chima from ThisDay Nigeria. Obinna, over to you, please, unmute.       MR. CHIMA:  Thank you, thank you.  Mr. President, thank you for this opportunity.           I would like to know, in 2020, Nigeria requested for a 3-billion-naira loan from the World Bank. We were able to get 1.5 billion. How soon are we expecting the balance of 1.5 and--or is there any change, delay, in the payment of that 1.5 billion? Thank you.            MR. MALPASS:  Thanks.  And I'm going to turn to Ousmane, as well, but I wanted to say one thing, which is Nigeria has huge potential. And with some of the improvements in the economic policies, the growth can be rapid for people across Nigeria. We've encouraged efforts that would reduce the subsidies for fossil fuels, that would encourage trade across borders, where Nigeria could be doing more in that area.            And very importantly, the multiple exchange rates has been a burden on the people of Nigeria, and we've encouraged the elimination of the official rates and the unification of rates so that money and investment and remittances can flow in and out of Nigeria with less friction. Our program remains strongly supportive of the people of Nigeria and of Nigeria.            Let me turn to Ousmane for some specifics on Nigeria.            OUSMANE DIAGANA, WORLD BANK VICE PRESIDENT FOR WEST AND CENTRAL AFRICA: Thank you very much, David.           As we speak, we have probably the largest portfolio of the World Bank in Nigeria. More than $12 billion.  Those are programs under implementation covering a variety of sectors, access to electricity, water, education, health, agriculture.       Especially for this year, indeed, we have prepared a pipeline--we had a pipeline of a number of programs and we have delivered about $2 billion for Nigeria in order to help the population have access to critical services but also to support governments and institutions to provide some technical assistance to a variety of stakeholders.            The conversation of when [audio distortion] Nigeria continues around some of the critical reforms that I think Nigeria has been waiting for some time. And we have seen progress and producing the [audio distortion] will continue in Nigeria as a very important partner for the Bank and also the role that it plays in Africa clearly--we make any investment in Nigeria will have also some positive externalities for African countries.            Thank you.           MR. MALPASS:  Yeah, can I underscore that last point of Ousmane's, as well, that throughout Africa, if one of the major economies can do well, it has very positive synergy with its neighbors, and that's one of our primary goals, to have successful economies that then bring synergy with neighbors, because that's a way that there can be massive progress in Africa.            MR. THEIS:  Thank you.            Calling next, Nuno Ferreira.  Nuno, go ahead, please.            MR. FERREIRA:  Hello, good afternoon.  I would like to ask you a question about the meeting in Paris earlier this week. The term \"lost decade\" was used by some political leaders. Do you believe that we are in danger of having a lost decade in Africa?  And what can we do to avoid it, or what debt relief will have to do with the solution?            MR. MALPASS:  Yeah, thank you. Well, COVID itself was a historically large setback, and it was particularly harmful for people--for the poorest and most vulnerable. And so, from that standpoint, we recognize that it will take years to claw back some of the losses.           I mentioned earlier the education system.  By having the advanced economies close down, and then the education systems--often, schools closed--children weren't able to move forward, and that's a critical part of the future of every country, and especially in Africa with the youth.            So, we're working very hard to avoid a lost decade; I want to say that. And I think there are still pathways forward in order to avoid having all of the setbacks extend in Africa. I want to give some specifics on that.            One is from the vaccination effort. We have to get vaccination started in more countries, and that means getting the supply, and that means those countries with excess releasing the supply. And that means using programs that are ready, that are on the shelf, that are on websites, and fully disclosed as the World Bank programs are, to get vaccinations to people across their countries. That's a key starting point.            And then, I wanted to say a second vital area is on debt. Oftentimes, the term \"lost decade\" is applied to Latin America, and I worked throughout the 1980s on the Latin debt crisis. And we're trying hard to avoid the situation that occurred in that crisis where, year after year, the debts were rescheduled, they were pushed forward into the future, but never actually reduced. And so, the new investment couldn't come in because they realized that they were going to end up be used to pay previously contracted debt. There needs to be a mechanism for those countries in Africa that have unsustainable debt burdens, for them to have actual debt reduction, debt relief.            And that's what we're working on with--that's what we're trying to do with my call a year ago--over a year ago--was for a debt moratorium. The G-20 put forward the debt suspension initiative, which delayed the payments but kept the interest rates compounding on that debt. And now, we have the Common Framework, where it faces the obstacles from the debt being--much of the key debt being collateralized, being nondisclosed as far as the contracts, and these are obstacles to successful debt restructuring and raises the concern or the possibility of a lost decade; so, we're working on that.            And then third, and my final point, is on the economic advancements themselves. Many countries have key things that they could be doing in terms of digitalization, in terms of trade facilitation, in terms of unification of exchange rates, in terms of the business climate being improved, in terms of infrastructure, which is so vital. All of those things could be done more.      And I would like to cite Sudan.  We are making progress in Sudan.  And you know on Monday there was a major conference in Paris on the progress on Sudan. We were able to clear our arrears, then the African Development Bank's arrears. And now, the IMF's arrears are on track to being cleared.  And that enables the international system to help Sudan. And then, in order to accomplish that, Sudan was taking very important steps to help itself through the unification of the exchange rate and other reforms that are really working.           I encourage each country to work to avoid the last decade that is still a risk for the continent.            MR. THEIS:  Thank you.            I see our next question is from Abdou Diaw of Senegal. Abdou, over to you.            MR. DIAW:  Hello, everyone. Thank you for the invitation. Just to add one question.            MR. THEIS:  Go ahead.            MR. DIAW:  [Through interpretation] During the summit, the President of Senegal, Macky Sall, asked developed countries to release their vaccines to other countries and to work with institutions such as the World Bank. What do you think of what Macky Sall said during the conference? Thank you.            MR. MALPASS:  He and other leaders were very effective at the conference on Tuesday in expressing visions and goals. I know Senegal has been an integral part of finding solutions to problems and moving forward and is involved already in the vaccination effort.       Makhtar Diop, our Managing Director of the IFC, the World Bank private sector arm, was meeting with President Macky Sall on Tuesday.  We're encouraged by the vaccination possibilities--the possibilities for vaccination supplies to be increased through production in Africa, of various components of the vaccines and various parts of the vaccination operations.            So, World Bank Group is encouraged by the progress and very engaged in the financing and operations that will help. MR. THEIS:  Excellent.  Working on an honor system here, I see the next question comes from an iPhone. So, I'm simply going to presume that you're a reporter and go ahead, please. And if you could identify yourself and your outlet, please. [Pause] If not, we'll move on to the next question, which--go ahead, please, yes.              MR. RODNEY SIEH:  Yeah, my name is Rodney Sieh.  I'm Editor, FrontPage Africa, in Liberia.            Recently, the World Bank received--approved financing for Liberia in terms of increased access to sustainable roads and reliable energy projects.  But most people are concerned about the fact that there aren't enough help for private sector investment.  Is there any plan--are any plans for that for the World Bank?           And also, the issue of vaccines, Africa has a lot of issues with temperature and stuff.  We are concerned people are not taking the vaccine because of the issues regarding whether the storage issues are being resolved.  Are there any concerns that the World Bank will help in that area?            MR. MALPASS:  Thanks.  I'll give--briefly, and then I'll turn to Ousmane, as well.            On the private sector, we're strongly supporting the details of private sector development. That means trade finance, for example, which had fallen off the cliff as a result of the COVID-19 pandemic.  IFC has doubled its support for trade finance.  And then, also, small business finance is a critical part of it and also the overall business climate.  So, I will turn to Ousmane on that.            And with regard to the vaccination effort, we are very aware of the individual constraints by various countries.  I mentioned in my opening that we'd done assessments of 140 countries, including Liberia, as far as what the preparation is for various kinds of vaccines.           So, if you look at our website that just went up yesterday, it shows the project documents for various countries and it gives details about the needed support in various parts of the supply chain.  We recognize that as important that the--that individual vaccines are provided to countries that can use different--countries will want different kinds of vaccines for their own situation.            For example, a country may want some vaccines that need deep cold storage for their urban areas; but then, may want a different vaccine for rural areas. That's comprehended--that's part of our programs and it's an important part of the delivery effort for the vaccination effort.            Let me turn to Ousmane.            MR. DIAGANA:  Thank you very much, David.            Liberia, the Bank is one of the very few donor agencies very, very active in Liberia. Most in terms of our field presence, we have significantly increased our footprint in Liberia.  We have today about 25 staff, composed of experts in variety of areas.  But also, in terms of financial assistance, our portfolio in Liberia is more than $400 million.  No later than yesterday, I have chaired a decision meeting on a vaccine project that will go to our Board before the end of fiscal year.  We have prepared a new project on the electricity sector.  And we have also a budget support operation going to the Board in middle of June.  Particularly very, very important for Liberia is the need to continue to push for reform that will allow the private sector to come in and to invest in a company [audio distortion] and indeed, the budget support operation that we have just prepared include a variety of reform area that certainly will improve the climate investment for Liberia.       Thank you.            MR. MALPASS:  Can I add one point on that, and a reminder to people that many countries in Africa benefitted from the debt reduction effort, the HIPC, Highly Indebted Poor Country, effort that was done early in the 2000s, in Liberia included.  Now, Sudan is moving toward the decision point.  Somalia has benefited in the most recent.            But this effort, I want to underscore the importance of having a successful debt relief effort for the highly indebted--for countries that have unsustainable debt burdens.  That was an important part of Africa's growth in the early part of this century, meaning in 2002 through 2008.  Debt reduction provided the basis for new investment and for recovery, including in Liberia.            Thanks. David.            MR. THEIS:  Thank you very much.  The next question I see comes from a participant, 442-2600.  Please identify yourself and your outlet and go ahead, please.            MR. TAO:  [Through interpretation] Good morning.            INTERPRETER:  The interpreter apologizes, but we cannot hear anything.  There is an echo.            [Technical difficulties]            MR. THEIS:  Sorry we have an echo on your line. We are not able to hear your question. I apologize. I can try and come back to you or you can send your question in the chat, please. But in the meantime, I'm going to turn to George Wiafe. George, go ahead.            MR. WIAFE:  Can you hear me, Mr. President?            MR. THEIS:  Yes, George.  Thank you.            MR. WIAFE:  My question is, you talked about how the pandemic has escalated the debts of [audio distortion] Ghana.  In the case of Ghana, what is the policy recommendation to help deal with our rising debt stock in terms of something that has gotten to threatening levels?  Are there any proposed policy recommendations for Ghana to help deal with our rising debt stock going forward, sir?           MR. MALPASS:  Yeah, thank you.  One issue is to try to hold down the non-concessional debt that is being taken on, and non-concessional means higher interest rate debt, because that burdens the future generations.            Another important step is the transparency of both the debt that's taken on and the investment projects that might be funded by that debt.  These are big challenges.  Also, working closely with World Bank and IMF as we both look to have countries have sustainable debt burdens rather than unsustainable debt burdens.           Let me turn to Ousmane for more on Ghana.            [Pause]           MR. THEIS:  Ousmane, are you coming in?            MR. DIAGANA:  No, thank you very much, David.           Just to supplement what David has said, in fact, Ghana's geographical position and reform has proceed over the last couple of years.  Of course, placed it in a very unique situation also in Africa.             I think we have a good dialogue with Ghanaian authorities.  We are preparing a new Country Partnership Framework in Ghana with the new government put in place, and we are also using a very inclusive approach in order to make sure that the private sector and the civil society will be part of the dialogue that will lead to preparing of [audio distortion] a new strategy.  It is clearly very critical to push in order to make sure that the depth of policy will be conceived for better investment and better results for Ghanaian population.            And also, I think the poverty reduction agenda in Ghana has made some progress.  This also has to be also be sustained.  I think the principle that David has already mentioned regarding how debt should be managed will be critical in that regard. MR. MALPASS:  And as we think about debt for countries, the world has seen a major reduction in interest rates, into zero or even negative for some of the borrowers; whereas, for some borrowers in Africa, the interest rates are still high.  So, one of the questions to creditors and to potential lenders is, are there ways to have much lower interest rates for debt as it is rolled over in Africa.            The World Bank is working in particular to have concessional debt levels and also to have grants and zero interest rate loans through IDA, as sources of financing for countries, in general.  And that's a high priority, to try to find light at the end of the tunnel so that the people of Africa are not constantly under the burden of unsustainable debt.            MR. THEIS:  Thank you.  I'm going to try the guest, 442-2600 one more time just to see if we can get rid of that echo.  Please identify yourself and your outlet.  Yes.           MR. ABDOULAYE:  [Through interpretation] Good morning. It is Tao Abdoulaye from Burkina Faso, The Economist.           My question relates to the supply of vaccine for African countries.  It seems that the Bank already had a plan to help African countries, but what did the Paris Summit change?  Because we're talking about multilateral initiatives, so what about that?  Thank you.            MR. MALPASS:  Yeah, thank you.  Well, there was clearly the recognition at the Paris meeting that vaccines were at the top of the list of concerns by the leaders of Africa.           One of the challenges has been to achieve more transparency in terms of what the manufacturers are able to produce, and what the constraints are on those manufacturers in terms of getting their product to developing countries.  In many cases, this means the options that some governments have, even if they may have sufficient supply, they're retaining options which constrain the delivery of vaccines to the developing countries.            That clarity of transparency is what the World Bank is calling for today with the release of our website showing very clearly the documents and the documentation of our programs, and we encourage others, including the intermediaries, the manufacturers, and the countries that are controlling the manufacturing, to release more information about the constraints on that supply.            For Burkina Faso, I think the questions are, what contracts do they have to get vaccines; who is on the other side of that contract; were those contracts signed; and does the other side of the contractactually have the prospect of delivering vaccines to Burkina Faso?  These are some of the unanswered questions in the international sphere. World Bank Group has a massive effort underway to encourage the transparency of other parties within the vaccination effort to be more transparent in their available supply and in their commitments.  How much have they committed to Burkina Faso?  What are the delivery schedules that they envision?            Thank you.            MR. THEIS:  Thank you.  And we had a reporter, Alonso Soto, from Bloomberg, wasn't able to raise his hand but is next in the queue.  Alonso, go ahead, please.           Alonso?           MR. SOTO:  Yeah, can you guys hear me?            MR. THEIS:  Yes, thank you.           MR. SOTO:  Great.  Mr. Malpass, you have talked a lot about Chad and about how key it is for private creditors to participate in the debt problems of that country, or the debt renegotiation.            I wanted to ask you if Glencore and the syndicate of lenders should have to renegotiate their oil-for-cash loan with Chad and take a haircut, if you think that is necessary, that is needed.  And also, if Glencore and the syndicate of lenders should be included in the common framework talks in Chad.            MR. MALPASS:  Short answer is, yes and yes.            So, by far, the biggest amount of reschedulable debt is with Glencore and very important to engage in that debt sustainability effort for Chad.  And as I mentioned in my remarks, the World Bank continues to put large flows in--has been and will be putting large flows to the people of Chad.  And so, there's benefit in the creditors working with the development community and with Chad, with the Government of Chad, on sustainable solutions.            Thank you.            MR. THEIS:  Thank you.            Abdoulaye Tao, can you come in next?            MR. ABDOULAYE:  [Through interpretation] I've already asked my question.            MR. THEIS:  Oh, thank you very much.            Next, I think we have Thierno Camara from Guinea.  Thierno.            MR. THIERNO CAMARA:  [Through interpretation] Can you hear me?            MR. THEIS:  We're trying to.  Go ahead, Thierno.            [Technical difficulties]           MR. CAMARA:  [Through interpretation]  So, I was saying that I'd like to thank you for this opportunity to meet with you today and to give us all these details about your efforts. I'd like to ask about the Guinean economy and it's becoming more resilient and we're improving our resiliency, despite the fact that we're having difficulty mobilizing resources and we have been able to increase our efforts over recent years to sign contracts for funding.  But today, we are looking at issues such as the increasing cost of gas, which is another outcome related to COVID that are having an impact on our economy.  And so, we're wondering what other efforts the Bank will making in terms of helping us with this. Thank you.            MR. MALPASS:  Okay.  Thank you.  I'm turning to Ousmane on this.            MR. THEIS:  And Ousmane, I think you're in the French channel right now.  If you could make sure that you switch to the English channel.  They will interpret for you, but just please make sure that on the screen that you're on French--on English, excuse me.  Thank you.            MR. DIAGANA:  [Through interpretation] Let me answer the question from our friend in Guinea in French.           I think that Guinea has been making significant progress in the recent year, but there is still strong dependence on extractive resources, particularly in the mining sector, which means that unification of the economy, the Guinean economy, which is indispensable in order to consolidate progress in eradicating poverty.  But it's also important to have a lot more investment so that the economy can create more jobs and this is also necessary to generate more revenue.            This is one of the most important things that has to be done.  In Guinea, there's a huge potential in terms of electricity production and supply, but there's a disconnect, a very serious disconnect, and I think we need to make more efforts--and the World Bank is working on this--with Guinea.  When I say \"World Bank\" I really mean the World Bank Group.  The World Bank Group, IFC, and MIGA are working on a number of programs.  We are having very good dialogue with the authorities to discuss partnerships that we can put into place to frame our future initiatives in terms of reforms and investments to help finance initiatives in Guinea from the World Bank Group.            Thank you.            MR. THEIS:  Thank you.  I see the next question in the chat, from Claude Plagbeto, of Benin:  \"The World Bank is now in the forefront of financing energy projects in West Africa; however, there is a strong trend toward the promotion of thermal power plants, with implications in terms of production costs and pollution.  What is the World Bank's interpretation of this race for thermal energy, given its growing interest in climate change issues?  Thank you.\"            MR. MALPASS:  Yeah, thank you.  That's a good question.  Regions of the world need to think about where they're going to get electricity access, and do it in a way that has the lower carbon output.            And what has been happening, and this may be a reference from the questioner, is, as the demands go up rapidly, the fastest way is with techniques that are carbon-intensive, which is the opposite of where the world would like to go.  The World Bank wants to work with countries on their long-term strategy, meaning, where will they get the growth in electricity access that they need?  And what are the lower-carbon sources of energy that are available?  This might be hydro; it might be natural gas; it might be improvements in the transmission grid that save electricity and allow more renewables to be brought on stream.            We have solar projects in many of the countries that are successful at bringing low-cost, clean energy to the countries, but they also need the expansion of baseload in the city areas.  These are all parts of our climate change action plan that are important in moving this along.           One other thing that we mentioned in the elements of our Climate Change Action Plan is the importance of countries reducing the subsidies that they apply for fossil fuels.  That often takes the form of subsidies to the electricity generation facilities that give them fossil fuel energy at a lower cost than the market cost or than the full cost to the world. So, we're working on all of those through IDA, through IBRD, and also very much by trying to encourage countries to align their development practices--I mean, their development goals, which certainly include clean energy for the health--you know, in urban areas, they're clogged with the output, the emissions, from thermal plants.            Ousmane, more to add there?            MR. DIAGANA:  [Through interpretation]  No, David.  I think you've covered everything on that point.  Thank you.  Thanks.  MR. THEIS:  Thanks very much.  Next question coming from Central African Republic, and I'll read it from the chat.  We've got it translated from French:           \"In addition to the health crisis that's led to a slowdown in growth, there is a security crisis with the involvement of several regional international actors, which has consequences for vital sectors of the economy.  Under these conditions, how can the World Bank help the Central African Republic?  Thank you.\"            MR. MALPASS:  Yeah, yeah.  This is a grave challenge.  I mentioned in my opening remarks the G5, the challenge for the Sahel.  And as we look at CAR, it and its neighbors face immense challenges from security issues.           As the World Bank, we strongly support development that creates jobs for people, a starting point for stability is jobs, and that's a major part of our efforts.  Also, where there is fragility, we can meet some of the needs by improving food security issues.  Those are important.  And we can work with the governments to have stronger governance structures that improve the stability of the countries.            And I need to mention also vaccinations as an important part of the one-, two-, and three-year time horizon for trying to find economic growth and stability.            Ousmane, more on that or on the constraints?           MR. DIAGANA:  [Through interpretation] Yes, thank you, David.            Perhaps I would just add that, in addition to the health crisis, which has been an endogenous shock, especially with the context of COVID-19 which has really aggravated other factors in countries such as CAR, such as the security issues.  And so, we need to invest more to strengthen the health systems and, consequently, help build resiliency, and this is a priority for the Bank.  So, we will be working on this with the Central African Republic.           Now, with respect to the security crisis itself, this is a consequence of inequalities and exclusion, which really creates a breeding ground for this type of activity.  So, it's extremely important in this area, as well, to create initiatives in terms of reforms, but also investment that will be distributed equally geographically and that will also enable us to help correct some of the structural difficulties that we are seeing in countries such as CAR and the new strategy that we will be working on with Central African Republic will focus on putting into place milestones so that agreements that Central African authorities will sign with different international partners will actually be implemented to help CAR make progress.  And the new financing that we will be providing for CAR will depend on the progress that is made in terms of achieving these milestones and indicators that will be decided by the authorities and with the international community.            Thank you.            MR. THEIS:  Thank you very much.            And this will conclude our press conference for today.  David or Ousmane, do you have any closing remarks before we end?  Thank you.            MR. MALPASS:  Thank you.  Thanks everybody, for good questions.  As you can see, we are very interested in the specific country progress that's being made.  That's where a huge amount of World Bank efforts are underway.            I do want to say to--a little bit repetitive--vaccinations are very important and it's important to have programs in place and to have the contracting be transparent; we're working on that.            With regard to debt, it's important that we recognize that some countries have unsustainable debt.  The G-20 has been very clear that it expects private sector creditors to participate, and that was the context of the discussion of Chad.  That's part of the Common Framework.            And with regard to climate, and I was happy that the questions came up on climate, both adaptation and mitigation are very important for many of the IDA countries. The high priority is to be prepared for changes in climate as they occur, and we're working with countries on their plans for that.            To conclude, really, the World Bank Group is heavily engaged country-by-country in Africa in looking for progress at the country level, at the subregional level across borders, as a key part of the strategy or the future to provide jobs, to provide growth, to provide better living standards, access to electricity, to clean water, to health, to education, to vaccines, all of the things that are vital for people's lives.            Thank you very much for joining, today.           MR. THEIS:  Thanks, everyone.  And this concludes our press conference for today.  Thank you all.","upi":"000533456","master_date":"2021-05-20T13:43:00Z","master_date_srt":"2021-05-20T13:43:00Z","master_recent_date_srt":"2021-05-20T13:43:00Z","master_recent_date":"2021-05-20T13:43:00Z","short_description":"Transcript: World Bank Group President David Malpass's Media Roundtable for Western and Central Africa","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","desc":" DAVID THEIS, WORLD BANK GROUP SPOKESMAN:  Good morning, everyone.  Thanks for dialing in.  Hope you're keeping well.  I'm David Theis, the World Bank's Press Secretary.  Welcome to this call with World Bank Group President, David Malpass, who is joined by our Vice President for Western Africa, Ousmane Diagana.            Mr. Malpass will give brief highlights of his remarks to open the call, and then we will turn to your questions.  We may try to send a longer version of the remarks after the call. It looks like folks are still coming in.  Sorry.  So, if I can ask everyone to please stay on mute and, when we open up for questions, please click the \"raise hand\" button at the bottom of the participant list.  If you're on an Apple device, you'll have to click at the top.  So, again, when we open up for questions, please click the \"raise hand\" button at the bottom of the participant list; or, if you're on an Apple device, click at the top.           If you want to listen in French, please click the translation tab at the bottom of the screen; and if you want to listen in English, of course, please click English.            We have several reporters on the line and we want to make sure to get to all of you, so, please, only one question per outlet.  Thanks again for joining.            Mr. Malpass.         DAVID MALPASS, WORLD BANK GROUP PRESIDENT:  Thank you very much, David.  Let me make sure I'm not muted.  I want to say good morning to everyone.  I'm in Washington, D.C. right now, and you may be anywhere in the world in any time zone.  I am pleased to be with so many of you from West and Central Africa; and also, with Ousmane Diagana, our Vice President for the Region.  Some of you have interacted with him in the past.            I want to quickly go through several of our major undertakings.  As you know, COVID-19 has taken a toll on lives and livelihoods and economies, so it's the highest priority in the various meetings and in our work.  It's devastating the poor and the job losses are immense.  And also, the reversals in education is a giant challenge.            Over the last ten years, the World Bank Group has invested over $200 billion in Sub-Saharan Africa and, as I announced on Tuesday at the summit in Paris, in just the next five years, we intend to invest and mobilize about $150 billion in Africa to support the continent's recovery.  And a large portion of that is through grants and long-term zero interest rate loans from IDA, which provides a strong net-positive flow for Africa. We're working full speed on an ambitious IDA20 replenishment, to be concluded by December 2021, and that will be critical for the concessional financing and grants that the IDA countries in Africa need.  That gives you the context for the funding support that we're doing both for the public sectors and the private sectors through IFC in Africa.  It's an all-out effort by the World Bank to provide as much support as possible during the crisis. One of the areas of our work has been on vaccines themselves. Since the outbreak of the crisis, we have invested more than $24 billion in Africa to support health and economic recovery.  Our Board authorized $12 billion for the vaccination efforts. And as of today there have been 38 African countries that have requested support on vaccination efforts, and 18 of those from West and Central Africa. We have six projects already approved by the World Bank Board, that includes Cote d'Ivoire, The Gambia, Cabo Verde, and more are scheduled to be approved over the next few weeks, several weeks.  And so, this effort is moving along fast from the World Bank standpoint, providing financing for countries to both purchase vaccines or receive vaccines from other intermediaries, and, importantly, to distribute those vaccines to people within their countries.        Unfortunately, the supply of vaccines has been limited. The delays are deepening. The inequality, the divide that's going on in the world and is a serious problem for fragility and for people's lives and livelihoods, and I've repeatedly urged countries that expect to have excess vaccine supplies to release their excess as soon as possible to developing countries that have delivery programs in place. This is a very important connection that needs to be made week-by-week now. We're at the crisis stage. We have been--of the COVID pandemic, and there has to be a matching between the countries that have access and the countries that have delivery programs that are ready to go. I've emphasized the need for transparency on that, because one of the big gaps is in knowing who has excess vaccines, which manufacturers have deliveries available, and which countries have programs that are ready to actually put shots, put jabs in people's arms.            So, in that spirit, the World Bank yesterday launched--we launched a comprehensive online portal that provides easy access to information.  I tweeted about it this morning. I encourage everyone to click on the website and see how the vaccination programs are set up in each of the now 22 programs that we have in place, and it's going to mount week by week.  We hope to reach 50 programs by midyear, which have clear documentation, clear explanation of the connection to the deliveries in countries.            This builds on the assessments that we did earlier in the year and late last year, 140 assessments of the capacity to actually deliver vaccines. This becomes the critical path in the vaccination effort for the countries that have excess vaccines to free up their options, their control, their export limitations so that the vaccines can go to developing countries that have programs and the World Bank has active, transparent programs that reach people’s arms, and they're available now and they're transparently disclosed on the website.  And we encourage other intermediaries and other participants in the global vaccination effort to do the same in terms of transparency.            I want to turn to debt sustainability.  It also has a very important transparency aspect to it.  The contracts are burdened by collateralization, by non-disclosure clauses, and by restraints on comparable treatment as countries look to restructure their debt contracts. This is a major problem in West Africa.  And as COVID-19 persists into 2021, the debt situation will certainly deteriorate further.            Comprehensive debt solutions, we think, involve four elements which we have proposed: One is debt suspension; then, there is debt reduction; there is the resolution of debt; and there's transparency, debt transparency.  So, in all four areas, there needs to be much more progress. We supported the DSSI (Debt Service Suspension Initiative) but recognize that there was only partial--for many of the major creditors, there was only partial participation. And during 2020, and now into 2021, large profits are being withdrawn from Africa, even during the crisis, and there's no real prospect for cancellation of those debts.      One of the themes of the Paris Conference two days ago, on Tuesday, was the call by African heads of state for cancellation of debts, but that's not the direction that the world is moving at this point.  A permanent solution is necessary for this overhang of debt stocks for countries that have unsustainable debt levels.  World Bank is working closely with the IMF to try to implement the G-20 Common Framework for debt reduction. The success of that hinges on full participation by the private sector, and also improvements in debt transparency. The full private sector participation is an essential part of any path to lasting debt sustainability. Let me give you some examples: It's not sufficient that Chad or Ethiopia, which have asked for Common Framework treatment--merely for them to seek comparable treatment from private creditors. The private creditors themselves must do their fair share and deliver debt relief in a timely manner and on fully comparable terms to official bilateral creditors. That process is underway, but it has moved very slowly and it means continuing burden of unsustainable debt on countries within Africa.            The private creditors need to recognize that a successful debt restructuring is a beneficial outcome for all parties involved. It brings relief to the people of the country, as we are trying to do in Chad, and it also benefits the private sector, because it limits their losses compared to a scenario of outright default. In the longer term, we want, the World Bank and the countries of Africa are working to try to have a stable and thriving economic growth prospect for the people of Africa and the business opportunities that are available there. But without the private creditors fully on board, the Common Framework won't be able to provide sustainable solutions for Chad, Ethiopia, or Zambia, the three countries that have asked for Common Framework treatment.            I wanted to go through that in some detail because we're at an important turning point in the Common Framework and we are urgently trying to implement it successfully so that we can have sustainability in debt. This builds on very strong World Bank financing, including to Chad. Over the next decade, the World Bank plans to put as much as $1.4 billion into Chad. This will strengthen Chad's ability to sustain a moderate debt burden, if that can be achieved.  That's the overall goal, to bring Chad to a moderate debt level. But so far, the participation by creditors has been limited and we're working on that in detail.   I want to also mention, and I'm happy to take questions on these areas--but I want to mention climate change.  This is a critical part of the World Bank efforts. We are working with countries to strengthen their capacity to absorb and adapt and transform their systems in response to climate change. We've announced the elements of our climate change action plan.     These include--and importantly, we want to integrate climate and development so it works for the people of the countries.  We want to have actual results in terms of successful adaptation and successful mitigation efforts within the climate sphere. There needs to be electricity access, and so that means growth in the production of electricity, but in ways that are cleaner and that are lower carbon emitting as we go along.  That's a major effort underway and the elements have been announced and we'll be releasing the plan itself and also participating actively in countries' Nationally Determined Contributions, the NDCs that are part of the Paris Agreement, as we, the World Bank, work to align our financing with the Paris Agreement.  And we're also participating actively in the runup to COP26.            I wanted to mention also, and I'm sorry to be so brief on very important issues, the work that we're doing on Fragile, Conflict, and Violent states. Eleven of the 22 countries in the West Africa Region are now affected by FCV, and more than 70 percent of the population live in FCV countries. We're scaling up our financial aid to the G-5, the Sahel countries: Burkina Faso, Chad, Mali, Mauritania, and Niger through IDA to support the conflict prevention and also the resilience and emergency responses that are needed. Our aid to those five, we expect to reach $8.5 billion for the fiscal years 2021, 2022, and 2023. So, that is starting now for the next two or so--little more than two calendar years from now.  Let me conclude, very nice to be with you today. We know that the road to recovery will be a long one.  The countries in the Region have applied lessons from previous crises, such as the Ebola outbreak in 2014. Many countries have strengthened their social safety nets to help protect the poor, and the World Bank is working actively--World Bank Group is working actively on those efforts and we think those are important preparations for future crises and the ability to get money to people during a crisis is a critical part of preparation.            And we want to also move faster on the key reforms that each of the countries is facing that will help draw in new investment. That gives you some description of the expanse of our work and I look forward to your questions.            Thanks.            MR. THEIS:  Thanks very much. I see we have some questions in the queue already. Just as a reminder to attendees on the line that, if you do want to ask a question, you click the \"raise hand\" button at the bottom of the participant list, unless you're on an Apple device, in which case it will be at the top.            And I see our first question has come in from Obinna Chima from ThisDay Nigeria. Obinna, over to you, please, unmute.       MR. CHIMA:  Thank you, thank you.  Mr. President, thank you for this opportunity.           I would like to know, in 2020, Nigeria requested for a 3-billion-naira loan from the World Bank. We were able to get 1.5 billion. How soon are we expecting the balance of 1.5 and--or is there any change, delay, in the payment of that 1.5 billion? Thank you.            MR. MALPASS:  Thanks.  And I'm going to turn to Ousmane, as well, but I wanted to say one thing, which is Nigeria has huge potential. And with some of the improvements in the economic policies, the growth can be rapid for people across Nigeria. We've encouraged efforts that would reduce the subsidies for fossil fuels, that would encourage trade across borders, where Nigeria could be doing more in that area.            And very importantly, the multiple exchange rates has been a burden on the people of Nigeria, and we've encouraged the elimination of the official rates and the unification of rates so that money and investment and remittances can flow in and out of Nigeria with less friction. Our program remains strongly supportive of the people of Nigeria and of Nigeria.            Let me turn to Ousmane for some specifics on Nigeria.            OUSMANE DIAGANA, WORLD BANK VICE PRESIDENT FOR WEST AND CENTRAL AFRICA: Thank you very much, David.           As we speak, we have probably the largest portfolio of the World Bank in Nigeria. More than $12 billion.  Those are programs under implementation covering a variety of sectors, access to electricity, water, education, health, agriculture.       Especially for this year, indeed, we have prepared a pipeline--we had a pipeline of a number of programs and we have delivered about $2 billion for Nigeria in order to help the population have access to critical services but also to support governments and institutions to provide some technical assistance to a variety of stakeholders.            The conversation of when [audio distortion] Nigeria continues around some of the critical reforms that I think Nigeria has been waiting for some time. And we have seen progress and producing the [audio distortion] will continue in Nigeria as a very important partner for the Bank and also the role that it plays in Africa clearly--we make any investment in Nigeria will have also some positive externalities for African countries.            Thank you.           MR. MALPASS:  Yeah, can I underscore that last point of Ousmane's, as well, that throughout Africa, if one of the major economies can do well, it has very positive synergy with its neighbors, and that's one of our primary goals, to have successful economies that then bring synergy with neighbors, because that's a way that there can be massive progress in Africa.            MR. THEIS:  Thank you.            Calling next, Nuno Ferreira.  Nuno, go ahead, please.            MR. FERREIRA:  Hello, good afternoon.  I would like to ask you a question about the meeting in Paris earlier this week. The term \"lost decade\" was used by some political leaders. Do you believe that we are in danger of having a lost decade in Africa?  And what can we do to avoid it, or what debt relief will have to do with the solution?            MR. MALPASS:  Yeah, thank you. Well, COVID itself was a historically large setback, and it was particularly harmful for people--for the poorest and most vulnerable. And so, from that standpoint, we recognize that it will take years to claw back some of the losses.           I mentioned earlier the education system.  By having the advanced economies close down, and then the education systems--often, schools closed--children weren't able to move forward, and that's a critical part of the future of every country, and especially in Africa with the youth.            So, we're working very hard to avoid a lost decade; I want to say that. And I think there are still pathways forward in order to avoid having all of the setbacks extend in Africa. I want to give some specifics on that.            One is from the vaccination effort. We have to get vaccination started in more countries, and that means getting the supply, and that means those countries with excess releasing the supply. And that means using programs that are ready, that are on the shelf, that are on websites, and fully disclosed as the World Bank programs are, to get vaccinations to people across their countries. That's a key starting point.            And then, I wanted to say a second vital area is on debt. Oftentimes, the term \"lost decade\" is applied to Latin America, and I worked throughout the 1980s on the Latin debt crisis. And we're trying hard to avoid the situation that occurred in that crisis where, year after year, the debts were rescheduled, they were pushed forward into the future, but never actually reduced. And so, the new investment couldn't come in because they realized that they were going to end up be used to pay previously contracted debt. There needs to be a mechanism for those countries in Africa that have unsustainable debt burdens, for them to have actual debt reduction, debt relief.            And that's what we're working on with--that's what we're trying to do with my call a year ago--over a year ago--was for a debt moratorium. The G-20 put forward the debt suspension initiative, which delayed the payments but kept the interest rates compounding on that debt. And now, we have the Common Framework, where it faces the obstacles from the debt being--much of the key debt being collateralized, being nondisclosed as far as the contracts, and these are obstacles to successful debt restructuring and raises the concern or the possibility of a lost decade; so, we're working on that.            And then third, and my final point, is on the economic advancements themselves. Many countries have key things that they could be doing in terms of digitalization, in terms of trade facilitation, in terms of unification of exchange rates, in terms of the business climate being improved, in terms of infrastructure, which is so vital. All of those things could be done more.      And I would like to cite Sudan.  We are making progress in Sudan.  And you know on Monday there was a major conference in Paris on the progress on Sudan. We were able to clear our arrears, then the African Development Bank's arrears. And now, the IMF's arrears are on track to being cleared.  And that enables the international system to help Sudan. And then, in order to accomplish that, Sudan was taking very important steps to help itself through the unification of the exchange rate and other reforms that are really working.           I encourage each country to work to avoid the last decade that is still a risk for the continent.            MR. THEIS:  Thank you.            I see our next question is from Abdou Diaw of Senegal. Abdou, over to you.            MR. DIAW:  Hello, everyone. Thank you for the invitation. Just to add one question.            MR. THEIS:  Go ahead.            MR. DIAW:  [Through interpretation] During the summit, the President of Senegal, Macky Sall, asked developed countries to release their vaccines to other countries and to work with institutions such as the World Bank. What do you think of what Macky Sall said during the conference? Thank you.            MR. MALPASS:  He and other leaders were very effective at the conference on Tuesday in expressing visions and goals. I know Senegal has been an integral part of finding solutions to problems and moving forward and is involved already in the vaccination effort.       Makhtar Diop, our Managing Director of the IFC, the World Bank private sector arm, was meeting with President Macky Sall on Tuesday.  We're encouraged by the vaccination possibilities--the possibilities for vaccination supplies to be increased through production in Africa, of various components of the vaccines and various parts of the vaccination operations.            So, World Bank Group is encouraged by the progress and very engaged in the financing and operations that will help. MR. THEIS:  Excellent.  Working on an honor system here, I see the next question comes from an iPhone. So, I'm simply going to presume that you're a reporter and go ahead, please. And if you could identify yourself and your outlet, please. [Pause] If not, we'll move on to the next question, which--go ahead, please, yes.              MR. RODNEY SIEH:  Yeah, my name is Rodney Sieh.  I'm Editor, FrontPage Africa, in Liberia.            Recently, the World Bank received--approved financing for Liberia in terms of increased access to sustainable roads and reliable energy projects.  But most people are concerned about the fact that there aren't enough help for private sector investment.  Is there any plan--are any plans for that for the World Bank?           And also, the issue of vaccines, Africa has a lot of issues with temperature and stuff.  We are concerned people are not taking the vaccine because of the issues regarding whether the storage issues are being resolved.  Are there any concerns that the World Bank will help in that area?            MR. MALPASS:  Thanks.  I'll give--briefly, and then I'll turn to Ousmane, as well.            On the private sector, we're strongly supporting the details of private sector development. That means trade finance, for example, which had fallen off the cliff as a result of the COVID-19 pandemic.  IFC has doubled its support for trade finance.  And then, also, small business finance is a critical part of it and also the overall business climate.  So, I will turn to Ousmane on that.            And with regard to the vaccination effort, we are very aware of the individual constraints by various countries.  I mentioned in my opening that we'd done assessments of 140 countries, including Liberia, as far as what the preparation is for various kinds of vaccines.           So, if you look at our website that just went up yesterday, it shows the project documents for various countries and it gives details about the needed support in various parts of the supply chain.  We recognize that as important that the--that individual vaccines are provided to countries that can use different--countries will want different kinds of vaccines for their own situation.            For example, a country may want some vaccines that need deep cold storage for their urban areas; but then, may want a different vaccine for rural areas. That's comprehended--that's part of our programs and it's an important part of the delivery effort for the vaccination effort.            Let me turn to Ousmane.            MR. DIAGANA:  Thank you very much, David.            Liberia, the Bank is one of the very few donor agencies very, very active in Liberia. Most in terms of our field presence, we have significantly increased our footprint in Liberia.  We have today about 25 staff, composed of experts in variety of areas.  But also, in terms of financial assistance, our portfolio in Liberia is more than $400 million.  No later than yesterday, I have chaired a decision meeting on a vaccine project that will go to our Board before the end of fiscal year.  We have prepared a new project on the electricity sector.  And we have also a budget support operation going to the Board in middle of June.  Particularly very, very important for Liberia is the need to continue to push for reform that will allow the private sector to come in and to invest in a company [audio distortion] and indeed, the budget support operation that we have just prepared include a variety of reform area that certainly will improve the climate investment for Liberia.       Thank you.            MR. MALPASS:  Can I add one point on that, and a reminder to people that many countries in Africa benefitted from the debt reduction effort, the HIPC, Highly Indebted Poor Country, effort that was done early in the 2000s, in Liberia included.  Now, Sudan is moving toward the decision point.  Somalia has benefited in the most recent.            But this effort, I want to underscore the importance of having a successful debt relief effort for the highly indebted--for countries that have unsustainable debt burdens.  That was an important part of Africa's growth in the early part of this century, meaning in 2002 through 2008.  Debt reduction provided the basis for new investment and for recovery, including in Liberia.            Thanks. David.            MR. THEIS:  Thank you very much.  The next question I see comes from a participant, 442-2600.  Please identify yourself and your outlet and go ahead, please.            MR. TAO:  [Through interpretation] Good morning.            INTERPRETER:  The interpreter apologizes, but we cannot hear anything.  There is an echo.            [Technical difficulties]            MR. THEIS:  Sorry we have an echo on your line. We are not able to hear your question. I apologize. I can try and come back to you or you can send your question in the chat, please. But in the meantime, I'm going to turn to George Wiafe. George, go ahead.            MR. WIAFE:  Can you hear me, Mr. President?            MR. THEIS:  Yes, George.  Thank you.            MR. WIAFE:  My question is, you talked about how the pandemic has escalated the debts of [audio distortion] Ghana.  In the case of Ghana, what is the policy recommendation to help deal with our rising debt stock in terms of something that has gotten to threatening levels?  Are there any proposed policy recommendations for Ghana to help deal with our rising debt stock going forward, sir?           MR. MALPASS:  Yeah, thank you.  One issue is to try to hold down the non-concessional debt that is being taken on, and non-concessional means higher interest rate debt, because that burdens the future generations.            Another important step is the transparency of both the debt that's taken on and the investment projects that might be funded by that debt.  These are big challenges.  Also, working closely with World Bank and IMF as we both look to have countries have sustainable debt burdens rather than unsustainable debt burdens.           Let me turn to Ousmane for more on Ghana.            [Pause]           MR. THEIS:  Ousmane, are you coming in?            MR. DIAGANA:  No, thank you very much, David.           Just to supplement what David has said, in fact, Ghana's geographical position and reform has proceed over the last couple of years.  Of course, placed it in a very unique situation also in Africa.             I think we have a good dialogue with Ghanaian authorities.  We are preparing a new Country Partnership Framework in Ghana with the new government put in place, and we are also using a very inclusive approach in order to make sure that the private sector and the civil society will be part of the dialogue that will lead to preparing of [audio distortion] a new strategy.  It is clearly very critical to push in order to make sure that the depth of policy will be conceived for better investment and better results for Ghanaian population.            And also, I think the poverty reduction agenda in Ghana has made some progress.  This also has to be also be sustained.  I think the principle that David has already mentioned regarding how debt should be managed will be critical in that regard. MR. MALPASS:  And as we think about debt for countries, the world has seen a major reduction in interest rates, into zero or even negative for some of the borrowers; whereas, for some borrowers in Africa, the interest rates are still high.  So, one of the questions to creditors and to potential lenders is, are there ways to have much lower interest rates for debt as it is rolled over in Africa.            The World Bank is working in particular to have concessional debt levels and also to have grants and zero interest rate loans through IDA, as sources of financing for countries, in general.  And that's a high priority, to try to find light at the end of the tunnel so that the people of Africa are not constantly under the burden of unsustainable debt.            MR. THEIS:  Thank you.  I'm going to try the guest, 442-2600 one more time just to see if we can get rid of that echo.  Please identify yourself and your outlet.  Yes.           MR. ABDOULAYE:  [Through interpretation] Good morning. It is Tao Abdoulaye from Burkina Faso, The Economist.           My question relates to the supply of vaccine for African countries.  It seems that the Bank already had a plan to help African countries, but what did the Paris Summit change?  Because we're talking about multilateral initiatives, so what about that?  Thank you.            MR. MALPASS:  Yeah, thank you.  Well, there was clearly the recognition at the Paris meeting that vaccines were at the top of the list of concerns by the leaders of Africa.           One of the challenges has been to achieve more transparency in terms of what the manufacturers are able to produce, and what the constraints are on those manufacturers in terms of getting their product to developing countries.  In many cases, this means the options that some governments have, even if they may have sufficient supply, they're retaining options which constrain the delivery of vaccines to the developing countries.            That clarity of transparency is what the World Bank is calling for today with the release of our website showing very clearly the documents and the documentation of our programs, and we encourage others, including the intermediaries, the manufacturers, and the countries that are controlling the manufacturing, to release more information about the constraints on that supply.            For Burkina Faso, I think the questions are, what contracts do they have to get vaccines; who is on the other side of that contract; were those contracts signed; and does the other side of the contractactually have the prospect of delivering vaccines to Burkina Faso?  These are some of the unanswered questions in the international sphere. World Bank Group has a massive effort underway to encourage the transparency of other parties within the vaccination effort to be more transparent in their available supply and in their commitments.  How much have they committed to Burkina Faso?  What are the delivery schedules that they envision?            Thank you.            MR. THEIS:  Thank you.  And we had a reporter, Alonso Soto, from Bloomberg, wasn't able to raise his hand but is next in the queue.  Alonso, go ahead, please.           Alonso?           MR. SOTO:  Yeah, can you guys hear me?            MR. THEIS:  Yes, thank you.           MR. SOTO:  Great.  Mr. Malpass, you have talked a lot about Chad and about how key it is for private creditors to participate in the debt problems of that country, or the debt renegotiation.            I wanted to ask you if Glencore and the syndicate of lenders should have to renegotiate their oil-for-cash loan with Chad and take a haircut, if you think that is necessary, that is needed.  And also, if Glencore and the syndicate of lenders should be included in the common framework talks in Chad.            MR. MALPASS:  Short answer is, yes and yes.            So, by far, the biggest amount of reschedulable debt is with Glencore and very important to engage in that debt sustainability effort for Chad.  And as I mentioned in my remarks, the World Bank continues to put large flows in--has been and will be putting large flows to the people of Chad.  And so, there's benefit in the creditors working with the development community and with Chad, with the Government of Chad, on sustainable solutions.            Thank you.            MR. THEIS:  Thank you.            Abdoulaye Tao, can you come in next?            MR. ABDOULAYE:  [Through interpretation] I've already asked my question.            MR. THEIS:  Oh, thank you very much.            Next, I think we have Thierno Camara from Guinea.  Thierno.            MR. THIERNO CAMARA:  [Through interpretation] Can you hear me?            MR. THEIS:  We're trying to.  Go ahead, Thierno.            [Technical difficulties]           MR. CAMARA:  [Through interpretation]  So, I was saying that I'd like to thank you for this opportunity to meet with you today and to give us all these details about your efforts. I'd like to ask about the Guinean economy and it's becoming more resilient and we're improving our resiliency, despite the fact that we're having difficulty mobilizing resources and we have been able to increase our efforts over recent years to sign contracts for funding.  But today, we are looking at issues such as the increasing cost of gas, which is another outcome related to COVID that are having an impact on our economy.  And so, we're wondering what other efforts the Bank will making in terms of helping us with this. Thank you.            MR. MALPASS:  Okay.  Thank you.  I'm turning to Ousmane on this.            MR. THEIS:  And Ousmane, I think you're in the French channel right now.  If you could make sure that you switch to the English channel.  They will interpret for you, but just please make sure that on the screen that you're on French--on English, excuse me.  Thank you.            MR. DIAGANA:  [Through interpretation] Let me answer the question from our friend in Guinea in French.           I think that Guinea has been making significant progress in the recent year, but there is still strong dependence on extractive resources, particularly in the mining sector, which means that unification of the economy, the Guinean economy, which is indispensable in order to consolidate progress in eradicating poverty.  But it's also important to have a lot more investment so that the economy can create more jobs and this is also necessary to generate more revenue.            This is one of the most important things that has to be done.  In Guinea, there's a huge potential in terms of electricity production and supply, but there's a disconnect, a very serious disconnect, and I think we need to make more efforts--and the World Bank is working on this--with Guinea.  When I say \"World Bank\" I really mean the World Bank Group.  The World Bank Group, IFC, and MIGA are working on a number of programs.  We are having very good dialogue with the authorities to discuss partnerships that we can put into place to frame our future initiatives in terms of reforms and investments to help finance initiatives in Guinea from the World Bank Group.            Thank you.            MR. THEIS:  Thank you.  I see the next question in the chat, from Claude Plagbeto, of Benin:  \"The World Bank is now in the forefront of financing energy projects in West Africa; however, there is a strong trend toward the promotion of thermal power plants, with implications in terms of production costs and pollution.  What is the World Bank's interpretation of this race for thermal energy, given its growing interest in climate change issues?  Thank you.\"            MR. MALPASS:  Yeah, thank you.  That's a good question.  Regions of the world need to think about where they're going to get electricity access, and do it in a way that has the lower carbon output.            And what has been happening, and this may be a reference from the questioner, is, as the demands go up rapidly, the fastest way is with techniques that are carbon-intensive, which is the opposite of where the world would like to go.  The World Bank wants to work with countries on their long-term strategy, meaning, where will they get the growth in electricity access that they need?  And what are the lower-carbon sources of energy that are available?  This might be hydro; it might be natural gas; it might be improvements in the transmission grid that save electricity and allow more renewables to be brought on stream.            We have solar projects in many of the countries that are successful at bringing low-cost, clean energy to the countries, but they also need the expansion of baseload in the city areas.  These are all parts of our climate change action plan that are important in moving this along.           One other thing that we mentioned in the elements of our Climate Change Action Plan is the importance of countries reducing the subsidies that they apply for fossil fuels.  That often takes the form of subsidies to the electricity generation facilities that give them fossil fuel energy at a lower cost than the market cost or than the full cost to the world. So, we're working on all of those through IDA, through IBRD, and also very much by trying to encourage countries to align their development practices--I mean, their development goals, which certainly include clean energy for the health--you know, in urban areas, they're clogged with the output, the emissions, from thermal plants.            Ousmane, more to add there?            MR. DIAGANA:  [Through interpretation]  No, David.  I think you've covered everything on that point.  Thank you.  Thanks.  MR. THEIS:  Thanks very much.  Next question coming from Central African Republic, and I'll read it from the chat.  We've got it translated from French:           \"In addition to the health crisis that's led to a slowdown in growth, there is a security crisis with the involvement of several regional international actors, which has consequences for vital sectors of the economy.  Under these conditions, how can the World Bank help the Central African Republic?  Thank you.\"            MR. MALPASS:  Yeah, yeah.  This is a grave challenge.  I mentioned in my opening remarks the G5, the challenge for the Sahel.  And as we look at CAR, it and its neighbors face immense challenges from security issues.           As the World Bank, we strongly support development that creates jobs for people, a starting point for stability is jobs, and that's a major part of our efforts.  Also, where there is fragility, we can meet some of the needs by improving food security issues.  Those are important.  And we can work with the governments to have stronger governance structures that improve the stability of the countries.            And I need to mention also vaccinations as an important part of the one-, two-, and three-year time horizon for trying to find economic growth and stability.            Ousmane, more on that or on the constraints?           MR. DIAGANA:  [Through interpretation] Yes, thank you, David.            Perhaps I would just add that, in addition to the health crisis, which has been an endogenous shock, especially with the context of COVID-19 which has really aggravated other factors in countries such as CAR, such as the security issues.  And so, we need to invest more to strengthen the health systems and, consequently, help build resiliency, and this is a priority for the Bank.  So, we will be working on this with the Central African Republic.           Now, with respect to the security crisis itself, this is a consequence of inequalities and exclusion, which really creates a breeding ground for this type of activity.  So, it's extremely important in this area, as well, to create initiatives in terms of reforms, but also investment that will be distributed equally geographically and that will also enable us to help correct some of the structural difficulties that we are seeing in countries such as CAR and the new strategy that we will be working on with Central African Republic will focus on putting into place milestones so that agreements that Central African authorities will sign with different international partners will actually be implemented to help CAR make progress.  And the new financing that we will be providing for CAR will depend on the progress that is made in terms of achieving these milestones and indicators that will be decided by the authorities and with the international community.            Thank you.            MR. THEIS:  Thank you very much.            And this will conclude our press conference for today.  David or Ousmane, do you have any closing remarks before we end?  Thank you.            MR. MALPASS:  Thank you.  Thanks everybody, for good questions.  As you can see, we are very interested in the specific country progress that's being made.  That's where a huge amount of World Bank efforts are underway.            I do want to say to--a little bit repetitive--vaccinations are very important and it's important to have programs in place and to have the contracting be transparent; we're working on that.            With regard to debt, it's important that we recognize that some countries have unsustainable debt.  The G-20 has been very clear that it expects private sector creditors to participate, and that was the context of the discussion of Chad.  That's part of the Common Framework.            And with regard to climate, and I was happy that the questions came up on climate, both adaptation and mitigation are very important for many of the IDA countries. The high priority is to be prepared for changes in climate as they occur, and we're working with countries on their plans for that.            To conclude, really, the World Bank Group is heavily engaged country-by-country in Africa in looking for progress at the country level, at the subregional level across borders, as a key part of the strategy or the future to provide jobs, to provide growth, to provide better living standards, access to electricity, to clean water, to health, to education, to vaccines, all of the things that are vital for people's lives.            Thank you very much for joining, today.           MR. THEIS:  Thanks, everyone.  And this concludes our press conference for today.  Thank you all.","date":"2021-05-20T13:43:00Z","contenttype":"Speeches and Transcripts"},"_951b815281d63902c405940ef5a47755a9b2549e":{"id":"951b815281d63902c405940ef5a47755a9b2549e","title":"Remarks by World Bank Group President David Malpass at the Summit on Financing African Economies","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2021/05/18/remarks-by-world-bank-group-president-david-malpass-at-the-summit-on-financing-african-economies","descr":"Remarks by World Bank Group President David Malpass at the Summit on Financing African Economies","lang":{"0":{"cdata!":"English"}},"cqpath":"/content/wb-home/en/news/speech/2021/05/18/remarks-by-world-bank-group-president-david-malpass-at-the-summit-on-financing-african-economies","wcmsource":"cq5","content":" Mr. President,  I am very pleased to join you and everyone for today’s important discussion on financing African economies. Africa is full of investment opportunities that can attract private enterprises and investors from around the world. The World Bank Group is using all possible resources, financing tools, and dedicated staff across the continent to improve African lives and business prospects. During the earlier session, I listened carefully to the challenges of vaccine access, inequality, and debt. I underscore the urgency in helping Africa overcome these crises. It’s clear that some countries will soon have vaccine supplies that vastly exceed demand, and I’ve repeatedly urged them to release the excess to countries that have delivery programs in place. We have Board-approved financing operations in many African countries to obtain safe doses and to administer them quickly and fairly as soon as the producer countries, COVAX, or manufacturers are ready. Over the past decade, the World Bank Group has invested $200 billion in Africa, and over just the next five years, we intend to invest and mobilize another $150 billion to support the continent’s development. A large portion of this will be through grants and long-term, zero interest-rate loans from IDA, which continues to provide strong positive net flows to Africa. I want to thank you all for your strong support for the IDA20 replenishment. Debt sustainability and transparency will also be vital in attracting new financing and investment. We supported the G20’s DSSI deferrals, although participation by major creditors has been only partial and continues to allow large profits to be withdrawn from Africa even during the crisis, with no prospect of the debt cancellations that many advocated today. We are strongly supporting the IMF and G20 in implementing the G20’s Common Framework for debt reduction. We encourage all creditors, especially private creditors, to make Chad’s debt treatment under the Common Framework a success in terms of debt reduction and durable sustainability. In this context, IDA expects to remain the largest provider of positive net flows in Chad over the next decade, strengthening Chad’s ability to sustain a moderate debt burden if that can be achieved. However, as in other African countries, Chad’s debt sustainability is being challenged by the very limited progress on their debt reduction and transparency.  As Axel discussed at yesterday’s Sudan summit, progress on debt there has been pivotal, along with the unification of the exchange rate, which proved to be immediately beneficial to the people of Sudan. We can now work together toward the HIPC Decision Point for Sudan in June. Africa needs large inflows of long-term resources. In addition to IDA, another important part of our support to Africa will be mobilization of the private sector, either directly through IFC and MIGA mobilizations or indirectly through the mobilization of funding by IDA and IBRD on capital markets. IFC’s Managing Director and Executive Vice President, Makhtar Diop, will provide more details on our private sector mobilization efforts in a few moments, and I would like to highlight initiatives that President Macron and I discussed recently. First, closing the infrastructure gap and improving access to low-carbon electricity. Second, IFC has doubled our trade finance. To continue this effort, we’re announcing that IFC and MIGA are about to launch a joint trade finance initiative in selected African countries. Third, we’re working to expand alternative small-business finance. And fourth, to support agribusiness activities, we’re proposing a 3-year pilot for a user-friendly blended finance facility. Thank you, President Macron.","content_1000":" Mr. President,  I am very pleased to join you and everyone for today’s important discussion on financing African economies. Africa is full of investment opportunities that can attract private enterprises and investors from around the world. The World Bank Group is using all possible resources, financing tools, and dedicated staff across the continent to improve African lives and business prospects. During the earlier session, I listened carefully to the challenges of vaccine access, inequality, and debt. I underscore the urgency in helping Africa overcome these crises. It’s clear that some countries will soon have vaccine supplies that vastly exceed demand, and I’ve repeatedly urged them to release the excess to countries that have delivery programs in place. We have Board-approved financing operations in many African countries to obtain safe doses and to administer them quickly and fairly as soon as the producer countries, COVAX, or manufacturers are ready. Over the past decade,","displayconttype":"Speeches and Transcripts","originating_unit":"External and Corporate Relations - Corporate Communications, ECRCC","originating_unit_exact":"External and Corporate Relations - Corporate Communications, ECRCC","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","masterconttype":"Speeches and Transcripts","node_id":"951b815281d63902c405940ef5a47755a9b2549e","wn_title":"Remarks by World Bank Group President David Malpass at the Summit on Financing African Economies","wn_desc":" Mr. President,  I am very pleased to join you and everyone for today’s important discussion on financing African economies. Africa is full of investment opportunities that can attract private enterprises and investors from around the world. The World Bank Group is using all possible resources, financing tools, and dedicated staff across the continent to improve African lives and business prospects. During the earlier session, I listened carefully to the challenges of vaccine access, inequality, and debt. I underscore the urgency in helping Africa overcome these crises. It’s clear that some countries will soon have vaccine supplies that vastly exceed demand, and I’ve repeatedly urged them to release the excess to countries that have delivery programs in place. We have Board-approved financing operations in many African countries to obtain safe doses and to administer them quickly and fairly as soon as the producer countries, COVAX, or manufacturers are ready. Over the past decade, the World Bank Group has invested $200 billion in Africa, and over just the next five years, we intend to invest and mobilize another $150 billion to support the continent’s development. A large portion of this will be through grants and long-term, zero interest-rate loans from IDA, which continues to provide strong positive net flows to Africa. I want to thank you all for your strong support for the IDA20 replenishment. Debt sustainability and transparency will also be vital in attracting new financing and investment. We supported the G20’s DSSI deferrals, although participation by major creditors has been only partial and continues to allow large profits to be withdrawn from Africa even during the crisis, with no prospect of the debt cancellations that many advocated today. We are strongly supporting the IMF and G20 in implementing the G20’s Common Framework for debt reduction. We encourage all creditors, especially private creditors, to make Chad’s debt treatment under the Common Framework a success in terms of debt reduction and durable sustainability. In this context, IDA expects to remain the largest provider of positive net flows in Chad over the next decade, strengthening Chad’s ability to sustain a moderate debt burden if that can be achieved. However, as in other African countries, Chad’s debt sustainability is being challenged by the very limited progress on their debt reduction and transparency.  As Axel discussed at yesterday’s Sudan summit, progress on debt there has been pivotal, along with the unification of the exchange rate, which proved to be immediately beneficial to the people of Sudan. We can now work together toward the HIPC Decision Point for Sudan in June. Africa needs large inflows of long-term resources. In addition to IDA, another important part of our support to Africa will be mobilization of the private sector, either directly through IFC and MIGA mobilizations or indirectly through the mobilization of funding by IDA and IBRD on capital markets. IFC’s Managing Director and Executive Vice President, Makhtar Diop, will provide more details on our private sector mobilization efforts in a few moments, and I would like to highlight initiatives that President Macron and I discussed recently. First, closing the infrastructure gap and improving access to low-carbon electricity. Second, IFC has doubled our trade finance. To continue this effort, we’re announcing that IFC and MIGA are about to launch a joint trade finance initiative in selected African countries. Third, we’re working to expand alternative small-business finance. And fourth, to support agribusiness activities, we’re proposing a 3-year pilot for a user-friendly blended finance facility. Thank you, President Macron.","upi":"000533456","master_date":"2021-05-18T11:20:00Z","master_date_srt":"2021-05-18T11:20:00Z","master_recent_date_srt":"2021-05-18T11:20:00Z","master_recent_date":"2021-05-18T11:20:00Z","short_description":"Remarks by World Bank Group President David Malpass at the Summit on Financing African Economies","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","desc":" Mr. President,  I am very pleased to join you and everyone for today’s important discussion on financing African economies. Africa is full of investment opportunities that can attract private enterprises and investors from around the world. The World Bank Group is using all possible resources, financing tools, and dedicated staff across the continent to improve African lives and business prospects. During the earlier session, I listened carefully to the challenges of vaccine access, inequality, and debt. I underscore the urgency in helping Africa overcome these crises. It’s clear that some countries will soon have vaccine supplies that vastly exceed demand, and I’ve repeatedly urged them to release the excess to countries that have delivery programs in place. We have Board-approved financing operations in many African countries to obtain safe doses and to administer them quickly and fairly as soon as the producer countries, COVAX, or manufacturers are ready. Over the past decade, the World Bank Group has invested $200 billion in Africa, and over just the next five years, we intend to invest and mobilize another $150 billion to support the continent’s development. A large portion of this will be through grants and long-term, zero interest-rate loans from IDA, which continues to provide strong positive net flows to Africa. I want to thank you all for your strong support for the IDA20 replenishment. Debt sustainability and transparency will also be vital in attracting new financing and investment. We supported the G20’s DSSI deferrals, although participation by major creditors has been only partial and continues to allow large profits to be withdrawn from Africa even during the crisis, with no prospect of the debt cancellations that many advocated today. We are strongly supporting the IMF and G20 in implementing the G20’s Common Framework for debt reduction. We encourage all creditors, especially private creditors, to make Chad’s debt treatment under the Common Framework a success in terms of debt reduction and durable sustainability. In this context, IDA expects to remain the largest provider of positive net flows in Chad over the next decade, strengthening Chad’s ability to sustain a moderate debt burden if that can be achieved. However, as in other African countries, Chad’s debt sustainability is being challenged by the very limited progress on their debt reduction and transparency.  As Axel discussed at yesterday’s Sudan summit, progress on debt there has been pivotal, along with the unification of the exchange rate, which proved to be immediately beneficial to the people of Sudan. We can now work together toward the HIPC Decision Point for Sudan in June. Africa needs large inflows of long-term resources. In addition to IDA, another important part of our support to Africa will be mobilization of the private sector, either directly through IFC and MIGA mobilizations or indirectly through the mobilization of funding by IDA and IBRD on capital markets. IFC’s Managing Director and Executive Vice President, Makhtar Diop, will provide more details on our private sector mobilization efforts in a few moments, and I would like to highlight initiatives that President Macron and I discussed recently. First, closing the infrastructure gap and improving access to low-carbon electricity. Second, IFC has doubled our trade finance. To continue this effort, we’re announcing that IFC and MIGA are about to launch a joint trade finance initiative in selected African countries. Third, we’re working to expand alternative small-business finance. And fourth, to support agribusiness activities, we’re proposing a 3-year pilot for a user-friendly blended finance facility. Thank you, President Macron.","date":"2021-05-18T11:20:00Z","contenttype":"Speeches and Transcripts"},"_2377c48dcd5c03cc0efbe328b0de08497064bb32":{"id":"2377c48dcd5c03cc0efbe328b0de08497064bb32","title":"Remarks by the World Bank Chief Economist for Africa at the Third Annual Bank Conference on Africa (ABCA)","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2016/06/15/third-annual-bank-conference-on-africa-abca-2016-closing-remarks","descr":"Closing Remarks by Albert Zeufack, Chief Economist for Africa Region, the World Bank at the Third Annual Bank Conference on Africa (ABCA, 2016); Oxford University.","keywd":"subject:urban development,regions:Africa","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","topic":"Urban Development","cqpath":"/content/wb-home/en/news/speech/2016/06/15/third-annual-bank-conference-on-africa-abca-2016-closing-remarks","regionname":"Africa","wcmsource":"cq5","content":" Good evening! I have the unenviable task of closing the third edition of the Annual Bank Conference on Africa (ABCA). Quite conscious that I'm standing between you and dinner I will try to make it enjoyable.  So, let me start with a story: A journalist once asked a great Soviet Leader: Comarade, If you could describe in one word the state  of the soviet economy, what would it be? He said: GOOD! And In two words what would it be? He replied: NOT GOOD! Believe me, when I am asked to sum-up this conference in two words, I will say: VERY GOOD! Indeed, it’s been a great conference, bringing together academics – wearing their ties to meet us bureaucrats – and representatives from governments and institutions – with loose collars to meet the academics.  I will attempt to summarize what I've heard in the last couple of days and then point to a few directions for future research. PART I: SOME CROSS-CUTTING THEMES I see three themes emerging from these discussions starting with our opening session and flowing through our various research sessions. First, property rights (Land Rights) are crucial to the sustainability of cities but these have to be balanced with obligations of land owners including taxes. Second, Public Services are essential to maximizing the potential of cities but they have to be built to serve, not just to impress. Third, A sense of Urgency: The time to act to make African Cities engines of growth is NOW! The future has to look different from the past!  On the first point, property rights are key for investment but – as Ed pointed out – also for establishing responsibility or obligations, including taxation, to be able to finance the services that make cities run. In Vernon’s talk yesterday, we saw the potential gains from improved property rights and reallocation in Nairobi. And the details matter: Paul showed us how taxing land is much more efficient than taxing property, because taxing property introduces incentives against investment.  Second, the quality of a city can be measured in the quality of its services. Yesterday, Adnan described forthcoming work that will give us insight into how giving people more voice in service delivery may or may not increase their tax compliance. Justice showed across many countries how power outages lead to smaller firms with lower energy intensity, failing to meet the potential of the agglomeration economy. Guy’s early work suggests that slum upgrading in urban Tanzania has enduring impacts decades later.  Third, It's critical that we act now in Africa because African cities  and urbanization are different from those in other regions. Several of you made the point that African cities are urbanizing more rapidly at lower rates of income than other regions have done.  Vernon showed how many African cities differ from those in rich countries, with slums right up against the city center.  But this sense of emergency is tamed by political economy considerations such as the apartheid legacy in South Africa or the role of Donors (DFIs)... Where safeguards policies can become counter-productive and the lack of prioritization in national budgets, hence the lack of institutions to finance African urbanization. Finally the need to look closer into city-level governance: the financing of cities and the link to political parties financing, especially in transport and housing projects, implement decentralization, avoid immobilism...  Solutions: Use national strategies to elevate the debate, Use the SDGs (11.3); use research to inform WB SCDs... Uganda For example. Part II: LOOKING FORWARD Now, as we look forward, what are some directions for building the evidence and analytics? First Data Needs: We need more and better data to analyze urbanization in Africa! We need:Surveys and census of where businesses are located and where households live within citiesTo collect and archive highly spatially detailed population and economic census data, A mapping of urban infrastructure based on satellite and related data Property and land price data and ownership patterns for cities, obtained through work in the field with local firms and agencies. Data on sub national public investments and expenditures (ESP infrastructure ) with considerable emphasis on reconciling sector specific spending by various levels of government in a particular territory Data on local input output tables and estimates of sub national employment multipliers Big data. Big data isn’t the answer to all our problems, but several talks have shown that it has real untapped potential. Ed showed how Google Street views may work in some areas, but that we have to take care – the same method that works in Boston may not work in Jakarta. Vernon and others showed the potential of satellite data. Some big data come from digitizing micro data that we already have, including Sam’s work in India and Theophil’s work in Canada.  Access to Open Data...  Second What are Research Issues that emerge from this discussion? We still have more questions than answers in this research field. Let me list a number of these:The Interplay between urbanization, demographic transition, Trade and Structural Transformation. MD made an important point that rapid urban growth in Africa has not been accompanied by decline in fertility as seen in many parts of LAC, EAP, etc. What are the key reasons for which time allocation decisions and fertility decisions within households has not changed? Is it because Africa’s urbanization has not been driven by “urban pull” as traditional models suggest, rather it has been driven by rural push? And does the small scale and informal nature on urban employment create stymie the process of capital labor substitution? Research on the patterns, drivers, and welfare consequences of the “incomplete” demographic transition would be most useful.Capabilities, capacity and urban investment choices: In his opening talk, Ed Glaeser made a compelling case for research at the intersection of judicial and executive capabilities and the choices made in terms of adopting new urban “solutions”, including rapid transit systems. We just don’t know much about this critical issues – as policy makers grapple with the choices of investing in new technological solutions vs. upgrading existing solutions. Bringing in a flavor of behavior economics, research on governance capabilities and urban solutions can be rather useful.Urban connectivity:  An important point Paul Collier made yesterday was on urban connectivity and its implications for labor market and agglomeration economies. Paul made the point that efficient density and connectivity requires that people and goods are able to move through the city to large employment clusters. Large African cities typically lack this: economic activity tends to be more dispersed, making some cities almost collections of villages, with less economic interconnectedness than in other comparable parts of the world. It would be very useful to have more analytics on the sorts of transport initiatives that would offer marked improved on the current state of affairs. Urban Housing: Much of the research over the past two days touched on housing markets, slums informal settlements and their broader implications. A critical need is to achieve a much better understanding of various options to expand mass urban housing in Africa. The prevailing wisdom is ‘incrementalism’, or slum upgrading. However, in many places older slums are on prime land near the centre for which the best use could be commercial. Redevelopment could be considered, as suggested by Vernon yesterday, but this is a very delicate subject. How have other countries handled this? Any lessons from Latin America? What is our  Or large scale government planned initiatives can be planned to redevelop an entire city. Much more research is needed to inform core housing choices.Secondary Cities: we’ve seen a lot of research on capitals, from Kampala to Yaounde. But we’ve seen much less on secondary cities. Patricia showed us that the real wage premium for the self-employed is highest in Tanzania’s capital, relative to other urban areas. We need to understand the shape of these wage gradients and the potential of these secondary cities. Also, this morning Andreas looked at the border cities in their capacities to serve the regional EAC market better. But there is still work to do to really inform policy. Failure to do so could lead to disastrous policy mistakes.Clusters, zones and other place based policies: Growth poles have become a fad, yet it is not clear if these translate into growth centers or the sorts of market and coordination failures they solve. As urbanization and clustering of activity go hand in hand, it would be important to refine methodologies and develop the data foundations to identify and assess spatial and sectoral linkages among sectors of an urban/ regional economy alongside identifying employment multipliers across sectors and regions.We need to deepen our knowledge of how to get urban labor markets to work better.  heard from Carolina about queuing for public sector work in Ethiopia and from Stefano and Simon about the importance of lowering search costs in Addis. We’ve talked about the importance of improving the quality of taxation and of services in cities. But we haven’t talked about how to get there. We need new research on the political economy of property rights reform in cities. One last point: Urbanization is highly path dependent. As Ed Glaeser told us yesterday, introducing tolls and fees in urban areas is much more difficult once people are used to enjoying those services for free. The same principle applies broadly. Given the low current levels of African urbanization and the high rate of change, now is the time to get it right. Before I let you go, a few thank you’s are very much in order. This conference required effort from a wide range of people across several institutions. But let’s start with the most important. Many thanks to Ken Omondi and Sally-Ann Lyon, for handling the massive task of organizing logistics, helping many of you to get here and to get back home again. Moussa Blimpo, Markus Goldstein, Dave Evans and the entire Africa Chief Economist's Team for tirelessly working to make this event possible! Also, on behalf of Makhtar Diop, Vice-President of the Africa Region of the World Bank, let me thank our keynote speaker, Ed Glaeser, and our invited guest speakers, Paul Collier, Vernon Henderson, Tony Venables, Jennifer Musisi, Crispian Olver, and Mthuli Ncube. We are grateful to our partners at the Centre for the Study of African Economies, the International Growth Centre, the Department of Economics at LSE and Oxford University, and to the Blavatnik School of Government for hosting the event in this splendid facility. Finally, thank you to all of you who have presented over the last few days.  Because of constraints listed above, the field of research on urbanization in Africa is still young. We need to all work together to advance high quality research in this area. The World Bank's Africa Region has just completed a study on Urbanization in Africa titled: \"Opening Doors\"? The study will be launched in the coming couple of months. Stay tuned!  Finally, Our next edition of ABCA will focus on African Agriculture, and will be held in June of next year. We'll be advertising a call for proposal soon. We hope that some of you will join us there and that you’ll spread the word to your colleagues working on this crucial area. Again, thanks to all of you for coming and have a safe trip back home! Albert Zeufack, Chief Economist for Africa Region, the World Bank","content_1000":" Good evening! I have the unenviable task of closing the third edition of the Annual Bank Conference on Africa (ABCA). Quite conscious that I'm standing between you and dinner I will try to make it enjoyable.  So, let me start with a story: A journalist once asked a great Soviet Leader: Comarade, If you could describe in one word the state  of the soviet economy, what would it be? He said: GOOD! And In two words what would it be? He replied: NOT GOOD! Believe me, when I am asked to sum-up this conference in two words, I will say: VERY GOOD! Indeed, it’s been a great conference, bringing together academics – wearing their ties to meet us bureaucrats – and representatives from governments and institutions – with loose collars to meet the academics.  I will attempt to summarize what I've heard in the last couple of days and then point to a few directions for future research. PART I: SOME CROSS-CUTTING THEMES I see three themes emerging from these discussions starting w","displayconttype":"Speeches and Transcripts","originating_unit":"AFREC - External Communications, AFREC","originating_unit_exact":"AFREC - External Communications, AFREC","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Speeches and Transcripts","node_id":"2377c48dcd5c03cc0efbe328b0de08497064bb32","wn_title":"Remarks by the World Bank Chief Economist for Africa at the Third Annual Bank Conference on Africa (ABCA)","wn_desc":" Good evening! I have the unenviable task of closing the third edition of the Annual Bank Conference on Africa (ABCA). Quite conscious that I'm standing between you and dinner I will try to make it enjoyable.  So, let me start with a story: A journalist once asked a great Soviet Leader: Comarade, If you could describe in one word the state  of the soviet economy, what would it be? He said: GOOD! And In two words what would it be? He replied: NOT GOOD! Believe me, when I am asked to sum-up this conference in two words, I will say: VERY GOOD! Indeed, it’s been a great conference, bringing together academics – wearing their ties to meet us bureaucrats – and representatives from governments and institutions – with loose collars to meet the academics.  I will attempt to summarize what I've heard in the last couple of days and then point to a few directions for future research. PART I: SOME CROSS-CUTTING THEMES I see three themes emerging from these discussions starting with our opening session and flowing through our various research sessions. First, property rights (Land Rights) are crucial to the sustainability of cities but these have to be balanced with obligations of land owners including taxes. Second, Public Services are essential to maximizing the potential of cities but they have to be built to serve, not just to impress. Third, A sense of Urgency: The time to act to make African Cities engines of growth is NOW! The future has to look different from the past!  On the first point, property rights are key for investment but – as Ed pointed out – also for establishing responsibility or obligations, including taxation, to be able to finance the services that make cities run. In Vernon’s talk yesterday, we saw the potential gains from improved property rights and reallocation in Nairobi. And the details matter: Paul showed us how taxing land is much more efficient than taxing property, because taxing property introduces incentives against investment.  Second, the quality of a city can be measured in the quality of its services. Yesterday, Adnan described forthcoming work that will give us insight into how giving people more voice in service delivery may or may not increase their tax compliance. Justice showed across many countries how power outages lead to smaller firms with lower energy intensity, failing to meet the potential of the agglomeration economy. Guy’s early work suggests that slum upgrading in urban Tanzania has enduring impacts decades later.  Third, It's critical that we act now in Africa because African cities  and urbanization are different from those in other regions. Several of you made the point that African cities are urbanizing more rapidly at lower rates of income than other regions have done.  Vernon showed how many African cities differ from those in rich countries, with slums right up against the city center.  But this sense of emergency is tamed by political economy considerations such as the apartheid legacy in South Africa or the role of Donors (DFIs)... Where safeguards policies can become counter-productive and the lack of prioritization in national budgets, hence the lack of institutions to finance African urbanization. Finally the need to look closer into city-level governance: the financing of cities and the link to political parties financing, especially in transport and housing projects, implement decentralization, avoid immobilism...  Solutions: Use national strategies to elevate the debate, Use the SDGs (11.3); use research to inform WB SCDs... Uganda For example. Part II: LOOKING FORWARD Now, as we look forward, what are some directions for building the evidence and analytics? First Data Needs: We need more and better data to analyze urbanization in Africa! We need:Surveys and census of where businesses are located and where households live within citiesTo collect and archive highly spatially detailed population and economic census data, A mapping of urban infrastructure based on satellite and related data Property and land price data and ownership patterns for cities, obtained through work in the field with local firms and agencies. Data on sub national public investments and expenditures (ESP infrastructure ) with considerable emphasis on reconciling sector specific spending by various levels of government in a particular territory Data on local input output tables and estimates of sub national employment multipliers Big data. Big data isn’t the answer to all our problems, but several talks have shown that it has real untapped potential. Ed showed how Google Street views may work in some areas, but that we have to take care – the same method that works in Boston may not work in Jakarta. Vernon and others showed the potential of satellite data. Some big data come from digitizing micro data that we already have, including Sam’s work in India and Theophil’s work in Canada.  Access to Open Data...  Second What are Research Issues that emerge from this discussion? We still have more questions than answers in this research field. Let me list a number of these:The Interplay between urbanization, demographic transition, Trade and Structural Transformation. MD made an important point that rapid urban growth in Africa has not been accompanied by decline in fertility as seen in many parts of LAC, EAP, etc. What are the key reasons for which time allocation decisions and fertility decisions within households has not changed? Is it because Africa’s urbanization has not been driven by “urban pull” as traditional models suggest, rather it has been driven by rural push? And does the small scale and informal nature on urban employment create stymie the process of capital labor substitution? Research on the patterns, drivers, and welfare consequences of the “incomplete” demographic transition would be most useful.Capabilities, capacity and urban investment choices: In his opening talk, Ed Glaeser made a compelling case for research at the intersection of judicial and executive capabilities and the choices made in terms of adopting new urban “solutions”, including rapid transit systems. We just don’t know much about this critical issues – as policy makers grapple with the choices of investing in new technological solutions vs. upgrading existing solutions. Bringing in a flavor of behavior economics, research on governance capabilities and urban solutions can be rather useful.Urban connectivity:  An important point Paul Collier made yesterday was on urban connectivity and its implications for labor market and agglomeration economies. Paul made the point that efficient density and connectivity requires that people and goods are able to move through the city to large employment clusters. Large African cities typically lack this: economic activity tends to be more dispersed, making some cities almost collections of villages, with less economic interconnectedness than in other comparable parts of the world. It would be very useful to have more analytics on the sorts of transport initiatives that would offer marked improved on the current state of affairs. Urban Housing: Much of the research over the past two days touched on housing markets, slums informal settlements and their broader implications. A critical need is to achieve a much better understanding of various options to expand mass urban housing in Africa. The prevailing wisdom is ‘incrementalism’, or slum upgrading. However, in many places older slums are on prime land near the centre for which the best use could be commercial. Redevelopment could be considered, as suggested by Vernon yesterday, but this is a very delicate subject. How have other countries handled this? Any lessons from Latin America? What is our  Or large scale government planned initiatives can be planned to redevelop an entire city. Much more research is needed to inform core housing choices.Secondary Cities: we’ve seen a lot of research on capitals, from Kampala to Yaounde. But we’ve seen much less on secondary cities. Patricia showed us that the real wage premium for the self-employed is highest in Tanzania’s capital, relative to other urban areas. We need to understand the shape of these wage gradients and the potential of these secondary cities. Also, this morning Andreas looked at the border cities in their capacities to serve the regional EAC market better. But there is still work to do to really inform policy. Failure to do so could lead to disastrous policy mistakes.Clusters, zones and other place based policies: Growth poles have become a fad, yet it is not clear if these translate into growth centers or the sorts of market and coordination failures they solve. As urbanization and clustering of activity go hand in hand, it would be important to refine methodologies and develop the data foundations to identify and assess spatial and sectoral linkages among sectors of an urban/ regional economy alongside identifying employment multipliers across sectors and regions.We need to deepen our knowledge of how to get urban labor markets to work better.  heard from Carolina about queuing for public sector work in Ethiopia and from Stefano and Simon about the importance of lowering search costs in Addis. We’ve talked about the importance of improving the quality of taxation and of services in cities. But we haven’t talked about how to get there. We need new research on the political economy of property rights reform in cities. One last point: Urbanization is highly path dependent. As Ed Glaeser told us yesterday, introducing tolls and fees in urban areas is much more difficult once people are used to enjoying those services for free. The same principle applies broadly. Given the low current levels of African urbanization and the high rate of change, now is the time to get it right. Before I let you go, a few thank you’s are very much in order. This conference required effort from a wide range of people across several institutions. But let’s start with the most important. Many thanks to Ken Omondi and Sally-Ann Lyon, for handling the massive task of organizing logistics, helping many of you to get here and to get back home again. Moussa Blimpo, Markus Goldstein, Dave Evans and the entire Africa Chief Economist's Team for tirelessly working to make this event possible! Also, on behalf of Makhtar Diop, Vice-President of the Africa Region of the World Bank, let me thank our keynote speaker, Ed Glaeser, and our invited guest speakers, Paul Collier, Vernon Henderson, Tony Venables, Jennifer Musisi, Crispian Olver, and Mthuli Ncube. We are grateful to our partners at the Centre for the Study of African Economies, the International Growth Centre, the Department of Economics at LSE and Oxford University, and to the Blavatnik School of Government for hosting the event in this splendid facility. Finally, thank you to all of you who have presented over the last few days.  Because of constraints listed above, the field of research on urbanization in Africa is still young. We need to all work together to advance high quality research in this area. The World Bank's Africa Region has just completed a study on Urbanization in Africa titled: \"Opening Doors\"? The study will be launched in the coming couple of months. Stay tuned!  Finally, Our next edition of ABCA will focus on African Agriculture, and will be held in June of next year. We'll be advertising a call for proposal soon. We hope that some of you will join us there and that you’ll spread the word to your colleagues working on this crucial area. Again, thanks to all of you for coming and have a safe trip back home! Albert Zeufack, Chief Economist for Africa Region, the World Bank","upi":"000340678","master_date":"2016-06-15T11:21:00Z","master_date_srt":"2016-06-15T11:21:00Z","master_recent_date_srt":"2016-06-15T11:21:00Z","master_recent_date":"2016-06-15T11:21:00Z","masterregion_exact":"Africa","short_description":"Closing Remarks by Albert Zeufack, Chief Economist for Africa Region, the World Bank at the Third Annual Bank Conference on Africa (ABCA, 2016); Oxford University.","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":" Good evening! I have the unenviable task of closing the third edition of the Annual Bank Conference on Africa (ABCA). Quite conscious that I'm standing between you and dinner I will try to make it enjoyable.  So, let me start with a story: A journalist once asked a great Soviet Leader: Comarade, If you could describe in one word the state  of the soviet economy, what would it be? He said: GOOD! And In two words what would it be? He replied: NOT GOOD! Believe me, when I am asked to sum-up this conference in two words, I will say: VERY GOOD! Indeed, it’s been a great conference, bringing together academics – wearing their ties to meet us bureaucrats – and representatives from governments and institutions – with loose collars to meet the academics.  I will attempt to summarize what I've heard in the last couple of days and then point to a few directions for future research. PART I: SOME CROSS-CUTTING THEMES I see three themes emerging from these discussions starting with our opening session and flowing through our various research sessions. First, property rights (Land Rights) are crucial to the sustainability of cities but these have to be balanced with obligations of land owners including taxes. Second, Public Services are essential to maximizing the potential of cities but they have to be built to serve, not just to impress. Third, A sense of Urgency: The time to act to make African Cities engines of growth is NOW! The future has to look different from the past!  On the first point, property rights are key for investment but – as Ed pointed out – also for establishing responsibility or obligations, including taxation, to be able to finance the services that make cities run. In Vernon’s talk yesterday, we saw the potential gains from improved property rights and reallocation in Nairobi. And the details matter: Paul showed us how taxing land is much more efficient than taxing property, because taxing property introduces incentives against investment.  Second, the quality of a city can be measured in the quality of its services. Yesterday, Adnan described forthcoming work that will give us insight into how giving people more voice in service delivery may or may not increase their tax compliance. Justice showed across many countries how power outages lead to smaller firms with lower energy intensity, failing to meet the potential of the agglomeration economy. Guy’s early work suggests that slum upgrading in urban Tanzania has enduring impacts decades later.  Third, It's critical that we act now in Africa because African cities  and urbanization are different from those in other regions. Several of you made the point that African cities are urbanizing more rapidly at lower rates of income than other regions have done.  Vernon showed how many African cities differ from those in rich countries, with slums right up against the city center.  But this sense of emergency is tamed by political economy considerations such as the apartheid legacy in South Africa or the role of Donors (DFIs)... Where safeguards policies can become counter-productive and the lack of prioritization in national budgets, hence the lack of institutions to finance African urbanization. Finally the need to look closer into city-level governance: the financing of cities and the link to political parties financing, especially in transport and housing projects, implement decentralization, avoid immobilism...  Solutions: Use national strategies to elevate the debate, Use the SDGs (11.3); use research to inform WB SCDs... Uganda For example. Part II: LOOKING FORWARD Now, as we look forward, what are some directions for building the evidence and analytics? First Data Needs: We need more and better data to analyze urbanization in Africa! We need:Surveys and census of where businesses are located and where households live within citiesTo collect and archive highly spatially detailed population and economic census data, A mapping of urban infrastructure based on satellite and related data Property and land price data and ownership patterns for cities, obtained through work in the field with local firms and agencies. Data on sub national public investments and expenditures (ESP infrastructure ) with considerable emphasis on reconciling sector specific spending by various levels of government in a particular territory Data on local input output tables and estimates of sub national employment multipliers Big data. Big data isn’t the answer to all our problems, but several talks have shown that it has real untapped potential. Ed showed how Google Street views may work in some areas, but that we have to take care – the same method that works in Boston may not work in Jakarta. Vernon and others showed the potential of satellite data. Some big data come from digitizing micro data that we already have, including Sam’s work in India and Theophil’s work in Canada.  Access to Open Data...  Second What are Research Issues that emerge from this discussion? We still have more questions than answers in this research field. Let me list a number of these:The Interplay between urbanization, demographic transition, Trade and Structural Transformation. MD made an important point that rapid urban growth in Africa has not been accompanied by decline in fertility as seen in many parts of LAC, EAP, etc. What are the key reasons for which time allocation decisions and fertility decisions within households has not changed? Is it because Africa’s urbanization has not been driven by “urban pull” as traditional models suggest, rather it has been driven by rural push? And does the small scale and informal nature on urban employment create stymie the process of capital labor substitution? Research on the patterns, drivers, and welfare consequences of the “incomplete” demographic transition would be most useful.Capabilities, capacity and urban investment choices: In his opening talk, Ed Glaeser made a compelling case for research at the intersection of judicial and executive capabilities and the choices made in terms of adopting new urban “solutions”, including rapid transit systems. We just don’t know much about this critical issues – as policy makers grapple with the choices of investing in new technological solutions vs. upgrading existing solutions. Bringing in a flavor of behavior economics, research on governance capabilities and urban solutions can be rather useful.Urban connectivity:  An important point Paul Collier made yesterday was on urban connectivity and its implications for labor market and agglomeration economies. Paul made the point that efficient density and connectivity requires that people and goods are able to move through the city to large employment clusters. Large African cities typically lack this: economic activity tends to be more dispersed, making some cities almost collections of villages, with less economic interconnectedness than in other comparable parts of the world. It would be very useful to have more analytics on the sorts of transport initiatives that would offer marked improved on the current state of affairs. Urban Housing: Much of the research over the past two days touched on housing markets, slums informal settlements and their broader implications. A critical need is to achieve a much better understanding of various options to expand mass urban housing in Africa. The prevailing wisdom is ‘incrementalism’, or slum upgrading. However, in many places older slums are on prime land near the centre for which the best use could be commercial. Redevelopment could be considered, as suggested by Vernon yesterday, but this is a very delicate subject. How have other countries handled this? Any lessons from Latin America? What is our  Or large scale government planned initiatives can be planned to redevelop an entire city. Much more research is needed to inform core housing choices.Secondary Cities: we’ve seen a lot of research on capitals, from Kampala to Yaounde. But we’ve seen much less on secondary cities. Patricia showed us that the real wage premium for the self-employed is highest in Tanzania’s capital, relative to other urban areas. We need to understand the shape of these wage gradients and the potential of these secondary cities. Also, this morning Andreas looked at the border cities in their capacities to serve the regional EAC market better. But there is still work to do to really inform policy. Failure to do so could lead to disastrous policy mistakes.Clusters, zones and other place based policies: Growth poles have become a fad, yet it is not clear if these translate into growth centers or the sorts of market and coordination failures they solve. As urbanization and clustering of activity go hand in hand, it would be important to refine methodologies and develop the data foundations to identify and assess spatial and sectoral linkages among sectors of an urban/ regional economy alongside identifying employment multipliers across sectors and regions.We need to deepen our knowledge of how to get urban labor markets to work better.  heard from Carolina about queuing for public sector work in Ethiopia and from Stefano and Simon about the importance of lowering search costs in Addis. We’ve talked about the importance of improving the quality of taxation and of services in cities. But we haven’t talked about how to get there. We need new research on the political economy of property rights reform in cities. One last point: Urbanization is highly path dependent. As Ed Glaeser told us yesterday, introducing tolls and fees in urban areas is much more difficult once people are used to enjoying those services for free. The same principle applies broadly. Given the low current levels of African urbanization and the high rate of change, now is the time to get it right. Before I let you go, a few thank you’s are very much in order. This conference required effort from a wide range of people across several institutions. But let’s start with the most important. Many thanks to Ken Omondi and Sally-Ann Lyon, for handling the massive task of organizing logistics, helping many of you to get here and to get back home again. Moussa Blimpo, Markus Goldstein, Dave Evans and the entire Africa Chief Economist's Team for tirelessly working to make this event possible! Also, on behalf of Makhtar Diop, Vice-President of the Africa Region of the World Bank, let me thank our keynote speaker, Ed Glaeser, and our invited guest speakers, Paul Collier, Vernon Henderson, Tony Venables, Jennifer Musisi, Crispian Olver, and Mthuli Ncube. We are grateful to our partners at the Centre for the Study of African Economies, the International Growth Centre, the Department of Economics at LSE and Oxford University, and to the Blavatnik School of Government for hosting the event in this splendid facility. Finally, thank you to all of you who have presented over the last few days.  Because of constraints listed above, the field of research on urbanization in Africa is still young. We need to all work together to advance high quality research in this area. The World Bank's Africa Region has just completed a study on Urbanization in Africa titled: \"Opening Doors\"? The study will be launched in the coming couple of months. Stay tuned!  Finally, Our next edition of ABCA will focus on African Agriculture, and will be held in June of next year. We'll be advertising a call for proposal soon. We hope that some of you will join us there and that you’ll spread the word to your colleagues working on this crucial area. Again, thanks to all of you for coming and have a safe trip back home! Albert Zeufack, Chief Economist for Africa Region, the World Bank","date":"2016-06-15T11:21:00Z","contenttype":"Speeches and Transcripts"},"_d60fa0ed3871e23366ab6f55c6ecf5d33b947c3f":{"id":"d60fa0ed3871e23366ab6f55c6ecf5d33b947c3f","title":"Closing the Gender Gap: Lessons from Africa","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/opinion/2016/02/25/closing-the-gender-gap-lessons-from-africa","descr":"We hear that girls in Africa don’t have the same opportunities as boys to get a decent education, that discrimination is shutting women out of the jobs and assets they need to provide a better standard of living for their families...","keywd":"subject:gender,subject:jobs and development,subject:education,regions:Africa","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","topic":"Gender,Jobs And Development,Education","cqpath":"/content/wb-home/en/news/opinion/2016/02/25/closing-the-gender-gap-lessons-from-africa","regionname":"Africa","wcmsource":"cq5","content":" We hear that girls in Africa don’t have the same opportunities as boys to get a decent education, that discrimination is shutting women out of the jobs and assets they need to provide a better standard of living for their families, that the benefits of economic growth are being wiped out because women are having too many children, and that thousands of women are dying in childbirth because they don’t have access to basic healthcare.   While all of these things are true, they also hide something that you rarely hear – that Africa has been making significant progress and even has a thing or two to teach the rest of the world. Between the establishment of the Millennium Development Goals in 1990, and the transition to the Sustainable Development Goals last year, the gap between girls’ and boys’ primary school enrollment was dramatically narrowed, the average rate of maternal mortality was almost halved, the ratio of women to men in the labor force increased so that it is now greater than in any other region of the world, and the average representation of women in national parliaments more than doubled —with Rwanda and Senegal topping the list of countries with the highest proportion of women in parliament (in Cabo Verde, gender parity at the cabinet level has prevailed for over a decade).   Part of the reason for this progress is that countries all across Africa have turned the depressing statistics with which we all too familiar into a surprising advantage. It is said that necessity is the mother of invention. In this spirit, governments, researchers, and many others in Africa have set about generating evidence to determine what works and what does not work to address the many gender challenges that are preventing them from making even greater progress. While economic development can be a major driving force in closing gaps between women and men, some issues are “sticky” and do not simply go away as countries get richer. An example of one of these sticky issues is occupational segregation. In many countries women and men work in different sectors and jobs simply because of their sex. This is clearly not efficient, yet this situation persists even in the wealthiest countries.   In Uganda, research has uncovered the factors that allow some women entrepreneurs to cross over into more profitable sectors, such as construction, that are usually dominated by men. As it turns out, women who have a male role model in their youth, especially a father, are more likely to cross-over into a male-dominated sector. Paradoxically teachers appear to discourage women from entering male-dominated sectors. The results of this research also suggest that a major obstacle to women crossing over is their lack of information on the higher profits they could earn in male-dominated sectors.  These results were echoed by a similar study in Ethiopia, which also highlighted the negative impact of sexual harassment and discrimination from customers who prefer to deal with a male business owner, and the difficulties women face in building up their professional networks in sectors with few other women. Both of these studies offer important lessons for policymakers around the world who wish to encourage and enable more women to move into sectors that can help improve the livelihoods of themselves and their families. Some of the most pressing gender issues across Africa have an important inter-generational aspect. When mothers are educated, delay marriage and childbearing, participate in the labor market, and don’t tolerate domestic violence, their daughters are more likely to grow up sharing those characteristics. We now have strong evidence that an effective way to address many of these issues is to support young women during adolescence - a critical juncture in their lives. In Uganda, the Empowerment and Livelihood for Adolescents (ELA) program, implemented by the NGO BRAC, uses girl-only clubs to deliver vocational and ‘life skills’ training. The vocational training emphasized skills that would be useful for self-employment, as there are not many opportunities in the formal wage employment market. An impact evaluation of ELA shows that the girls in the program were 72 percent more likely to be engaged in income-generating activities and reported self-employment earnings that were three times greater compared to the baseline mean. Impacts on control over their own bodies were equally impressive: girls in the program were 26 percent less likely to have a child, 58 percent less likely to be married or cohabiting, and 44 percent less likely to have had sex against their will over the previous 12 months. Girls also expressed their desire that their own daughters would have their first child 4.6 years later, highlighting the potential intergenerational and knowledge-sharing impacts of the project. The impact of this type of program is of great significance for many African countries where a lack of progress reducing fertility rates has led to a ballooning youth population who lack access to sufficient economic opportunities to make a decent start in life. Evidence from Africa also shows us that, sometimes, simply making the economy work better can disproportionately benefit women, even without an explicit focus on gender. Some recent experiences with land tenure reform provide one such example.   Improving tenure security can increase incentives to invest in land by giving land owners greater confidence that they will reap the benefits of whatever investments they make. Evidence suggests that the impacts of such improvements are greater for women, who tend to have less access to land and weaker tenure security. This is an important issue for economic growth in Africa, where so much economic activity is concentrated in the agriculture sector. In Rwanda, improving land owners’ tenure security caused women to increase investments in their land by 19 percentage points, which was double the impact on men. This evidence could help policymakers to further improve agricultural productivity and food security. That doesn’t mean of course that we don’t need laws and policies promoting gender equity. A country like Cabo Verde adopted a legal and institutional framework promoting gender equality back in 1975 guaranteeing equality and non-discrimination before the law. And quotas ensuring women’s participation in political life are a major step forward. But it’s time to move from speeches to actions with impact. The fact that we are seeing a proliferation of such rigorous evidence on measures to address gender issues in Africa gives us great hope. Firstly, it signifies that we have moved well beyond the tendency to include gender in development policy as a well-meaning token, and can now systematically develop rigorously tested solutions that work in practice. Secondly, it gives Africa the rare opportunity to lead the global policy dialogue on gender and speak for itself, by its own actions, rather than being spoken about, and prescribed to, by others. Makhtar Diop has served as the World Bank's Vice President for Africa since May 2012.  Under his leadership, the World Bank Group committed a record-breaking $11.6 billion to Sub-Saharan Africa in FY 2015 to help tackle development challenges Cristina Duarte is Cabo Verde’s Minister of Finance, Planning and Public Administration since 2006. Before her appointment, she was the Director of Cabo Verde's private sector development and competitiveness program. Early in her career, she worked for Citibank in Kenya and Angola.  ","content_1000":" We hear that girls in Africa don’t have the same opportunities as boys to get a decent education, that discrimination is shutting women out of the jobs and assets they need to provide a better standard of living for their families, that the benefits of economic growth are being wiped out because women are having too many children, and that thousands of women are dying in childbirth because they don’t have access to basic healthcare.   While all of these things are true, they also hide something that you rarely hear – that Africa has been making significant progress and even has a thing or two to teach the rest of the world. Between the establishment of the Millennium Development Goals in 1990, and the transition to the Sustainable Development Goals last year, the gap between girls’ and boys’ primary school enrollment was dramatically narrowed, the average rate of maternal mortality was almost halved, the ratio of women to men in the labor force increased so that it is now greater","displayconttype":"Opinion","originating_unit":"Africa, AFR","originating_unit_exact":"Africa, AFR","displayconttype_exact":"Opinion","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Opinion","masterupi":"000112890","node_id":"d60fa0ed3871e23366ab6f55c6ecf5d33b947c3f","wn_title":"Closing the Gender Gap: Lessons from Africa","wn_desc":" We hear that girls in Africa don’t have the same opportunities as boys to get a decent education, that discrimination is shutting women out of the jobs and assets they need to provide a better standard of living for their families, that the benefits of economic growth are being wiped out because women are having too many children, and that thousands of women are dying in childbirth because they don’t have access to basic healthcare.   While all of these things are true, they also hide something that you rarely hear – that Africa has been making significant progress and even has a thing or two to teach the rest of the world. Between the establishment of the Millennium Development Goals in 1990, and the transition to the Sustainable Development Goals last year, the gap between girls’ and boys’ primary school enrollment was dramatically narrowed, the average rate of maternal mortality was almost halved, the ratio of women to men in the labor force increased so that it is now greater than in any other region of the world, and the average representation of women in national parliaments more than doubled —with Rwanda and Senegal topping the list of countries with the highest proportion of women in parliament (in Cabo Verde, gender parity at the cabinet level has prevailed for over a decade).   Part of the reason for this progress is that countries all across Africa have turned the depressing statistics with which we all too familiar into a surprising advantage. It is said that necessity is the mother of invention. In this spirit, governments, researchers, and many others in Africa have set about generating evidence to determine what works and what does not work to address the many gender challenges that are preventing them from making even greater progress. While economic development can be a major driving force in closing gaps between women and men, some issues are “sticky” and do not simply go away as countries get richer. An example of one of these sticky issues is occupational segregation. In many countries women and men work in different sectors and jobs simply because of their sex. This is clearly not efficient, yet this situation persists even in the wealthiest countries.   In Uganda, research has uncovered the factors that allow some women entrepreneurs to cross over into more profitable sectors, such as construction, that are usually dominated by men. As it turns out, women who have a male role model in their youth, especially a father, are more likely to cross-over into a male-dominated sector. Paradoxically teachers appear to discourage women from entering male-dominated sectors. The results of this research also suggest that a major obstacle to women crossing over is their lack of information on the higher profits they could earn in male-dominated sectors.  These results were echoed by a similar study in Ethiopia, which also highlighted the negative impact of sexual harassment and discrimination from customers who prefer to deal with a male business owner, and the difficulties women face in building up their professional networks in sectors with few other women. Both of these studies offer important lessons for policymakers around the world who wish to encourage and enable more women to move into sectors that can help improve the livelihoods of themselves and their families. Some of the most pressing gender issues across Africa have an important inter-generational aspect. When mothers are educated, delay marriage and childbearing, participate in the labor market, and don’t tolerate domestic violence, their daughters are more likely to grow up sharing those characteristics. We now have strong evidence that an effective way to address many of these issues is to support young women during adolescence - a critical juncture in their lives. In Uganda, the Empowerment and Livelihood for Adolescents (ELA) program, implemented by the NGO BRAC, uses girl-only clubs to deliver vocational and ‘life skills’ training. The vocational training emphasized skills that would be useful for self-employment, as there are not many opportunities in the formal wage employment market. An impact evaluation of ELA shows that the girls in the program were 72 percent more likely to be engaged in income-generating activities and reported self-employment earnings that were three times greater compared to the baseline mean. Impacts on control over their own bodies were equally impressive: girls in the program were 26 percent less likely to have a child, 58 percent less likely to be married or cohabiting, and 44 percent less likely to have had sex against their will over the previous 12 months. Girls also expressed their desire that their own daughters would have their first child 4.6 years later, highlighting the potential intergenerational and knowledge-sharing impacts of the project. The impact of this type of program is of great significance for many African countries where a lack of progress reducing fertility rates has led to a ballooning youth population who lack access to sufficient economic opportunities to make a decent start in life. Evidence from Africa also shows us that, sometimes, simply making the economy work better can disproportionately benefit women, even without an explicit focus on gender. Some recent experiences with land tenure reform provide one such example.   Improving tenure security can increase incentives to invest in land by giving land owners greater confidence that they will reap the benefits of whatever investments they make. Evidence suggests that the impacts of such improvements are greater for women, who tend to have less access to land and weaker tenure security. This is an important issue for economic growth in Africa, where so much economic activity is concentrated in the agriculture sector. In Rwanda, improving land owners’ tenure security caused women to increase investments in their land by 19 percentage points, which was double the impact on men. This evidence could help policymakers to further improve agricultural productivity and food security. That doesn’t mean of course that we don’t need laws and policies promoting gender equity. A country like Cabo Verde adopted a legal and institutional framework promoting gender equality back in 1975 guaranteeing equality and non-discrimination before the law. And quotas ensuring women’s participation in political life are a major step forward. But it’s time to move from speeches to actions with impact. The fact that we are seeing a proliferation of such rigorous evidence on measures to address gender issues in Africa gives us great hope. Firstly, it signifies that we have moved well beyond the tendency to include gender in development policy as a well-meaning token, and can now systematically develop rigorously tested solutions that work in practice. Secondly, it gives Africa the rare opportunity to lead the global policy dialogue on gender and speak for itself, by its own actions, rather than being spoken about, and prescribed to, by others. Makhtar Diop has served as the World Bank's Vice President for Africa since May 2012.  Under his leadership, the World Bank Group committed a record-breaking $11.6 billion to Sub-Saharan Africa in FY 2015 to help tackle development challenges Cristina Duarte is Cabo Verde’s Minister of Finance, Planning and Public Administration since 2006. Before her appointment, she was the Director of Cabo Verde's private sector development and competitiveness program. Early in her career, she worked for Citibank in Kenya and Angola.  ","upi":"000340678","master_date":"2016-02-25T09:49:00Z","master_date_srt":"2016-02-25T09:49:00Z","master_recent_date_srt":"2016-02-25T09:49:00Z","master_recent_date":"2016-02-25T09:49:00Z","masterregion_exact":"Africa","short_description":"We hear that girls in Africa don’t have the same opportunities as boys to get a decent education, that discrimination is shutting women out of the jobs and assets they need to provide a better standard of living for their families...","masterconttype_exact":"Opinion","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":" We hear that girls in Africa don’t have the same opportunities as boys to get a decent education, that discrimination is shutting women out of the jobs and assets they need to provide a better standard of living for their families, that the benefits of economic growth are being wiped out because women are having too many children, and that thousands of women are dying in childbirth because they don’t have access to basic healthcare.   While all of these things are true, they also hide something that you rarely hear – that Africa has been making significant progress and even has a thing or two to teach the rest of the world. Between the establishment of the Millennium Development Goals in 1990, and the transition to the Sustainable Development Goals last year, the gap between girls’ and boys’ primary school enrollment was dramatically narrowed, the average rate of maternal mortality was almost halved, the ratio of women to men in the labor force increased so that it is now greater than in any other region of the world, and the average representation of women in national parliaments more than doubled —with Rwanda and Senegal topping the list of countries with the highest proportion of women in parliament (in Cabo Verde, gender parity at the cabinet level has prevailed for over a decade).   Part of the reason for this progress is that countries all across Africa have turned the depressing statistics with which we all too familiar into a surprising advantage. It is said that necessity is the mother of invention. In this spirit, governments, researchers, and many others in Africa have set about generating evidence to determine what works and what does not work to address the many gender challenges that are preventing them from making even greater progress. While economic development can be a major driving force in closing gaps between women and men, some issues are “sticky” and do not simply go away as countries get richer. An example of one of these sticky issues is occupational segregation. In many countries women and men work in different sectors and jobs simply because of their sex. This is clearly not efficient, yet this situation persists even in the wealthiest countries.   In Uganda, research has uncovered the factors that allow some women entrepreneurs to cross over into more profitable sectors, such as construction, that are usually dominated by men. As it turns out, women who have a male role model in their youth, especially a father, are more likely to cross-over into a male-dominated sector. Paradoxically teachers appear to discourage women from entering male-dominated sectors. The results of this research also suggest that a major obstacle to women crossing over is their lack of information on the higher profits they could earn in male-dominated sectors.  These results were echoed by a similar study in Ethiopia, which also highlighted the negative impact of sexual harassment and discrimination from customers who prefer to deal with a male business owner, and the difficulties women face in building up their professional networks in sectors with few other women. Both of these studies offer important lessons for policymakers around the world who wish to encourage and enable more women to move into sectors that can help improve the livelihoods of themselves and their families. Some of the most pressing gender issues across Africa have an important inter-generational aspect. When mothers are educated, delay marriage and childbearing, participate in the labor market, and don’t tolerate domestic violence, their daughters are more likely to grow up sharing those characteristics. We now have strong evidence that an effective way to address many of these issues is to support young women during adolescence - a critical juncture in their lives. In Uganda, the Empowerment and Livelihood for Adolescents (ELA) program, implemented by the NGO BRAC, uses girl-only clubs to deliver vocational and ‘life skills’ training. The vocational training emphasized skills that would be useful for self-employment, as there are not many opportunities in the formal wage employment market. An impact evaluation of ELA shows that the girls in the program were 72 percent more likely to be engaged in income-generating activities and reported self-employment earnings that were three times greater compared to the baseline mean. Impacts on control over their own bodies were equally impressive: girls in the program were 26 percent less likely to have a child, 58 percent less likely to be married or cohabiting, and 44 percent less likely to have had sex against their will over the previous 12 months. Girls also expressed their desire that their own daughters would have their first child 4.6 years later, highlighting the potential intergenerational and knowledge-sharing impacts of the project. The impact of this type of program is of great significance for many African countries where a lack of progress reducing fertility rates has led to a ballooning youth population who lack access to sufficient economic opportunities to make a decent start in life. Evidence from Africa also shows us that, sometimes, simply making the economy work better can disproportionately benefit women, even without an explicit focus on gender. Some recent experiences with land tenure reform provide one such example.   Improving tenure security can increase incentives to invest in land by giving land owners greater confidence that they will reap the benefits of whatever investments they make. Evidence suggests that the impacts of such improvements are greater for women, who tend to have less access to land and weaker tenure security. This is an important issue for economic growth in Africa, where so much economic activity is concentrated in the agriculture sector. In Rwanda, improving land owners’ tenure security caused women to increase investments in their land by 19 percentage points, which was double the impact on men. This evidence could help policymakers to further improve agricultural productivity and food security. That doesn’t mean of course that we don’t need laws and policies promoting gender equity. A country like Cabo Verde adopted a legal and institutional framework promoting gender equality back in 1975 guaranteeing equality and non-discrimination before the law. And quotas ensuring women’s participation in political life are a major step forward. But it’s time to move from speeches to actions with impact. The fact that we are seeing a proliferation of such rigorous evidence on measures to address gender issues in Africa gives us great hope. Firstly, it signifies that we have moved well beyond the tendency to include gender in development policy as a well-meaning token, and can now systematically develop rigorously tested solutions that work in practice. Secondly, it gives Africa the rare opportunity to lead the global policy dialogue on gender and speak for itself, by its own actions, rather than being spoken about, and prescribed to, by others. Makhtar Diop has served as the World Bank's Vice President for Africa since May 2012.  Under his leadership, the World Bank Group committed a record-breaking $11.6 billion to Sub-Saharan Africa in FY 2015 to help tackle development challenges Cristina Duarte is Cabo Verde’s Minister of Finance, Planning and Public Administration since 2006. Before her appointment, she was the Director of Cabo Verde's private sector development and competitiveness program. Early in her career, she worked for Citibank in Kenya and Angola.  ","date":"2016-02-25T09:49:00Z","contenttype":"Opinion"},"_c8126a098a68e5cbc42959aa518235ea6fe1f869":{"id":"c8126a098a68e5cbc42959aa518235ea6fe1f869","title":"Running Together in Malawi’s Poverty Race","countrycode":"MW","country":"Malawi","country_exact":"Malawi","countrycode_exact":"MW","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2015/12/09/running-together-in-malawis-poverty-race","count":"Malawi","descr":"In commemoration of the 50 anniversary of the country’s partnership with the World Bank, citizens offered solutions to ending poverty through their art, essays and poetry.","keywd":"country:Malawi,regions:Africa,subject:poverty measurement and analysis","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","topic":"Poverty Measurement And Analysis","cqpath":"/content/wb-home/en/news/speech/2015/12/09/running-together-in-malawis-poverty-race","regionname":"Africa","wcmsource":"cq5","content":" Good Evening It is tremendously exciting to be up on this stage at the 50 year mark of the World Bank Group’s partnership with Malawi and to have the opportunity to look both backwards and forwards. The World Bank and Malawi have been working together for half a century. We have enjoyed a very strong relationship and have done many good things together in pursuit of Malawi’s development. Since its independence, Malawi can count many achievements. It has established a working democracy and sustained peace both internally and with its neighbors. It is making hard won progress in a number of areas of human development, including on several of MDG targets. The country has increased primary school enrolment and access to safe water, built road networks as well as institutions. During this period the Bank has actively supported the country’s efforts. We have done so in three ways: first through lending, which has totaled about USD$4.3 billion. We plan to continue a strong program of lending in the future. I want to note here – because many aren’t aware—that roughly half of World Bank support comes in the form of grants (free) and the other half is in no-interest loans payable over 38 years with a 6 years grace period. The second form of assistance is policy advice. As a multilateral institution our job is to provide objective, technically sound analysis to our member states drawing on global experience from our thousands of operations in 188 countries. And we have also provided technical support to help Malawi build its institutions. Over the decades, we have also built relationships with many actors; many of you are represented here tonight. I am pleased to say that our primary relationship—with Government—remains strong and steadfast, with productive engagement and open dialogue across a wide range of issues. Together with the IFC and MIGA we work directly with the private sector, we also interact regularly with NGOs, civil society, the media, policy institutes and academia. We also fund programs jointly with other development partners. So, on behalf of myself, our Director Bella Bird, our Vice President for Africa Makhtar Diop and our World Bank President Jim Kim, I would like to say thank you very much: to the Government and people of Malawi; to all of our development partners here tonight for being such good collaborators; and to all of the WBG staff who have worked so hard to assist Malawi over the last few decades and continue to do so every day. I promise I will not stand up here and list all of the projects the World Bank has invested. But I can say with great conviction that we have been engaged intensively across the waterfront to support government programs that have really made a difference to people’s lives. Our first project signed in October 1966 provided the funding for the design of the M1 from Zomba to Lilongwe, and the M4 from Lilongwe to Mchinji. Those roads have been there for a long time and are essential to Malawi’s economy, though very few people traveling on them today know they were originally financed by the World Bank. I think that our investment in infrastructure counts among our main achievements. Beyond roads may I quickly just mention a few you may recognize:In education - teens of the 70’s know the four national secondary schools we financed– Mzuzu Government, Lilongwe Girls, Dedza, and Blantyre Secondary Schools; We later supported 20 more in both urban and rural areas, plus thousands of primary school classrooms through MASAF;In water - Mulunguzi Dam on Zomba Mountain now serving Zomba, and water supply schemes all over the country;In agriculture –the rehabilitation of the four major national irrigation schemes – Muona, Nkhate, Likangala and Limphasa. The other area of deep engagement has been in the macroeconomic arena. For many people macro policy is rather dry and abstract and it can be hard to imagine how it affects poor people out in the villages, but the truth is it has an enormous impact. High inflation drives up prices and hurts the poor most—high interest rates, currency instability discourages investors which means fewer jobs, and exports. Macroeconomic stability always and everywhere lays at the heart of development --without it, it is very hard to achieve growth needed to reduce poverty, which is why we are engaged in this “heartbeat” area. And finally, the World Bank has been able to come in with emergency support in times of crisis, such the $80m we provided in the aftermath of the floods this year, along with $75m for social safety nets to help the flood affected. We are fortunate in the fruitful partnership we have built over the past half century, and tonight, at this anniversary milestone, we renew our commitment to help the country eliminate extreme poverty and achieve growth and shared prosperity, with the utmost conviction and sense of urgency. Now, looking forward, the main challenge before us is the persistence of poverty—Malawi is just not winning this battle yet. Today Malawi is one of the world’s poorest countries with a GNI per capita of $250. According to World Bank estimates, almost 70 percent of the population are projected to live below the poverty line in 2015. That is living on less than $1.90 per day. Clearly, this is no time for complacency. Not for Malawi nor for its development partners. Indeed at 50, Malawians all over the country have been reflecting on how far the nation has come since independence. Opinions vary about how and why Malawi is where it is today, and what should be done next. But the common theme seems to be a thirst for transformation – a sense that Malawi needs to step on the accelerator so as not to be left behind and address the political, economic and institutional barriers that have prevented greater progress. Malawi at 50 is simply too vulnerable. Let me paint a picture of what I mean here by vulnerable. An economy dependent on rain fed agriculture and a few commodities; weak integration with the regional economy; high dependence on foreign aid; and elusive macro-stability. In the longer term, climate change and uncontrolled population growth constitute perhaps the greatest threat to Malawi’s future generations. We have already seen the devastation of the flooding this year, and more climate uncertainty is expected. None of this is breaking news to anyone in the room. These are chronic challenges Malawians have been grappling with for decades. To solve these problems is not easy, otherwise it would have already happened. However, there is no “natural state” or reason to conclude that poverty should remain so high in Malawi. The country, your country, has so many advantages from land and water resources, freedom from conflict and civil strife, to the natural talent of its people. Other countries in the region are achieving high rates of economic growth and impressive poverty reduction. And so can Malawi. To leverage the country’s potential requires institutions that work, are not plagued by corruption and inefficiency. Malawi’s civil service was once a source of national pride and can be so again. Reform efforts are underway and these deserve support. Cashgate was a harsh a wakeup call. But it is also an opportunity to get basic systems working again. In a young democracy episodes like cashgate can be a defining moment and a chance to set things on a better course, permanently. Making it easier for businesses to operate and invest can unlock the considerable potential of the private sector, as can investing in human beings-human capital to equip the next generation to compete in the global economy. And there are several opportunities for regional integration that Malawi could seize right now within Africa; greater regional connectivity and trade can help Malawi deal with shocks. Irrigated agriculture offers great potential for take-off growth-in the Shire Valley for example. There is a lot of dynamism in the neighborhood that Malawi could leverage - the SADC market is very close by and very large. So, it is indeed possible for Malawi to make a quantum leap forward in the fight against poverty—It is not an easy fight and requires all forces going to battle in the same direction; with creativity, energy, focus. The Government can lead but it can’t wipe out poverty alone, the Bank can’t do this alone, nor can the DPs, or NGOs or individuals acting alone. But together it can be done, it has been done--we have global evidence that the needle on poverty can move when you have a clear development vision, one in which long-term goals trump short-term interests, a national vision which has unwavering commitment from leadership, and is embraced by citizens, and supported by friends and partners in which everyone brings their best game forward. I was having lunch recently with a very successful businessman in New York. Because he was well known people kept interrupting him with requests. I asked later why he so politely allowed these interruptions. He gave a simple answer I will never forget: “you never know where a good idea will come from.” And I realized that much of this person’s enormous success came from listening to a lot of different people even when it wasn’t convenient. It occurred to me that this message is highly relevant today in Malawi’s fight against poverty. Ending poverty needs the wisdom and experience of the older generation and it needs the energy and restlessness of the youth. It needs innovators and new thinking. So it makes sense to keep minds, ears, hearts open to hear all the voices. You never know where good ideas will come from! And that is why we launched this competition. There is the famous young Malawian who constructed the village windmill. But there are many other invisible heroes out there, walking all over the country today, trying to make things better. People who refused to be defined by poverty or despair and are out there, trying to make a difference. We need to hear from them. Let me say a word about the special role of youth and artists in the fight to end poverty. These days we hear a lot about the need for a “change in mindset”; from political leaders and citizens alike. And who influences mind set more than artists? Throughout history art and artists have played a catalytic role in shaping society and social progress. Artists can be change agents—who use their influence and talent to challenge, provoke, inspire. A single photograph can replace a thousand policy papers and propel people to action. Artistic expression can create jobs, drive tourism and commerce and not just in rich countries. Artists and youth are not often part of the discussions about poverty and development, yet they have such a contribution to make. And youth - they will inherit the consequences of decisions made today. They therefore need to be inside the conversation. It is in this context that we thought of having a special category for these young people below the age of 40 in this poverty competition. I hope you enjoy the evening as we present the prizes. I also encourage you to mingle with the winners and judges during the cocktail—they would be happy share their experiences of this process. Let me conclude by saying that Malawi at 50 faces fierce challenges but enormous opportunities. The nation has already accomplished many things—against difficult odds---and these gains should be recognized and protected. Poverty has proven itself a stubborn enemy but change is possible, big changes. As you heard the great Nelson Mandela say, since so many development problems are man-made they can also be addressed by the actions of men (and women) with strong vision and a shared line of sight. It is within the power of everyone sitting in this room today to be co-creators of a better future, of turning dreams into reality. As the WBG, after 50 years, we stand ready to continue our long partnership and walk with Malawi, no, run with you, to a place we hope is not too far in the distance, where citizens have grabbed hold of their future and changed their destiny, where Malawi is on the move and has left poverty behind. Thank you very much.","content_1000":" Good Evening It is tremendously exciting to be up on this stage at the 50 year mark of the World Bank Group’s partnership with Malawi and to have the opportunity to look both backwards and forwards. The World Bank and Malawi have been working together for half a century. We have enjoyed a very strong relationship and have done many good things together in pursuit of Malawi’s development. Since its independence, Malawi can count many achievements. It has established a working democracy and sustained peace both internally and with its neighbors. It is making hard won progress in a number of areas of human development, including on several of MDG targets. The country has increased primary school enrolment and access to safe water, built road networks as well as institutions. During this period the Bank has actively supported the country’s efforts. We have done so in three ways: first through lending, which has totaled about USD$4.3 billion. We plan to continue a strong program of lending","displayconttype":"Speeches and Transcripts","originating_unit":"Africa, AFR","originating_unit_exact":"Africa, AFR","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Speeches and Transcripts","node_id":"c8126a098a68e5cbc42959aa518235ea6fe1f869","wn_title":"Running Together in Malawi’s Poverty Race","wn_desc":" Good Evening It is tremendously exciting to be up on this stage at the 50 year mark of the World Bank Group’s partnership with Malawi and to have the opportunity to look both backwards and forwards. The World Bank and Malawi have been working together for half a century. We have enjoyed a very strong relationship and have done many good things together in pursuit of Malawi’s development. Since its independence, Malawi can count many achievements. It has established a working democracy and sustained peace both internally and with its neighbors. It is making hard won progress in a number of areas of human development, including on several of MDG targets. The country has increased primary school enrolment and access to safe water, built road networks as well as institutions. During this period the Bank has actively supported the country’s efforts. We have done so in three ways: first through lending, which has totaled about USD$4.3 billion. We plan to continue a strong program of lending in the future. I want to note here – because many aren’t aware—that roughly half of World Bank support comes in the form of grants (free) and the other half is in no-interest loans payable over 38 years with a 6 years grace period. The second form of assistance is policy advice. As a multilateral institution our job is to provide objective, technically sound analysis to our member states drawing on global experience from our thousands of operations in 188 countries. And we have also provided technical support to help Malawi build its institutions. Over the decades, we have also built relationships with many actors; many of you are represented here tonight. I am pleased to say that our primary relationship—with Government—remains strong and steadfast, with productive engagement and open dialogue across a wide range of issues. Together with the IFC and MIGA we work directly with the private sector, we also interact regularly with NGOs, civil society, the media, policy institutes and academia. We also fund programs jointly with other development partners. So, on behalf of myself, our Director Bella Bird, our Vice President for Africa Makhtar Diop and our World Bank President Jim Kim, I would like to say thank you very much: to the Government and people of Malawi; to all of our development partners here tonight for being such good collaborators; and to all of the WBG staff who have worked so hard to assist Malawi over the last few decades and continue to do so every day. I promise I will not stand up here and list all of the projects the World Bank has invested. But I can say with great conviction that we have been engaged intensively across the waterfront to support government programs that have really made a difference to people’s lives. Our first project signed in October 1966 provided the funding for the design of the M1 from Zomba to Lilongwe, and the M4 from Lilongwe to Mchinji. Those roads have been there for a long time and are essential to Malawi’s economy, though very few people traveling on them today know they were originally financed by the World Bank. I think that our investment in infrastructure counts among our main achievements. Beyond roads may I quickly just mention a few you may recognize:In education - teens of the 70’s know the four national secondary schools we financed– Mzuzu Government, Lilongwe Girls, Dedza, and Blantyre Secondary Schools; We later supported 20 more in both urban and rural areas, plus thousands of primary school classrooms through MASAF;In water - Mulunguzi Dam on Zomba Mountain now serving Zomba, and water supply schemes all over the country;In agriculture –the rehabilitation of the four major national irrigation schemes – Muona, Nkhate, Likangala and Limphasa. The other area of deep engagement has been in the macroeconomic arena. For many people macro policy is rather dry and abstract and it can be hard to imagine how it affects poor people out in the villages, but the truth is it has an enormous impact. High inflation drives up prices and hurts the poor most—high interest rates, currency instability discourages investors which means fewer jobs, and exports. Macroeconomic stability always and everywhere lays at the heart of development --without it, it is very hard to achieve growth needed to reduce poverty, which is why we are engaged in this “heartbeat” area. And finally, the World Bank has been able to come in with emergency support in times of crisis, such the $80m we provided in the aftermath of the floods this year, along with $75m for social safety nets to help the flood affected. We are fortunate in the fruitful partnership we have built over the past half century, and tonight, at this anniversary milestone, we renew our commitment to help the country eliminate extreme poverty and achieve growth and shared prosperity, with the utmost conviction and sense of urgency. Now, looking forward, the main challenge before us is the persistence of poverty—Malawi is just not winning this battle yet. Today Malawi is one of the world’s poorest countries with a GNI per capita of $250. According to World Bank estimates, almost 70 percent of the population are projected to live below the poverty line in 2015. That is living on less than $1.90 per day. Clearly, this is no time for complacency. Not for Malawi nor for its development partners. Indeed at 50, Malawians all over the country have been reflecting on how far the nation has come since independence. Opinions vary about how and why Malawi is where it is today, and what should be done next. But the common theme seems to be a thirst for transformation – a sense that Malawi needs to step on the accelerator so as not to be left behind and address the political, economic and institutional barriers that have prevented greater progress. Malawi at 50 is simply too vulnerable. Let me paint a picture of what I mean here by vulnerable. An economy dependent on rain fed agriculture and a few commodities; weak integration with the regional economy; high dependence on foreign aid; and elusive macro-stability. In the longer term, climate change and uncontrolled population growth constitute perhaps the greatest threat to Malawi’s future generations. We have already seen the devastation of the flooding this year, and more climate uncertainty is expected. None of this is breaking news to anyone in the room. These are chronic challenges Malawians have been grappling with for decades. To solve these problems is not easy, otherwise it would have already happened. However, there is no “natural state” or reason to conclude that poverty should remain so high in Malawi. The country, your country, has so many advantages from land and water resources, freedom from conflict and civil strife, to the natural talent of its people. Other countries in the region are achieving high rates of economic growth and impressive poverty reduction. And so can Malawi. To leverage the country’s potential requires institutions that work, are not plagued by corruption and inefficiency. Malawi’s civil service was once a source of national pride and can be so again. Reform efforts are underway and these deserve support. Cashgate was a harsh a wakeup call. But it is also an opportunity to get basic systems working again. In a young democracy episodes like cashgate can be a defining moment and a chance to set things on a better course, permanently. Making it easier for businesses to operate and invest can unlock the considerable potential of the private sector, as can investing in human beings-human capital to equip the next generation to compete in the global economy. And there are several opportunities for regional integration that Malawi could seize right now within Africa; greater regional connectivity and trade can help Malawi deal with shocks. Irrigated agriculture offers great potential for take-off growth-in the Shire Valley for example. There is a lot of dynamism in the neighborhood that Malawi could leverage - the SADC market is very close by and very large. So, it is indeed possible for Malawi to make a quantum leap forward in the fight against poverty—It is not an easy fight and requires all forces going to battle in the same direction; with creativity, energy, focus. The Government can lead but it can’t wipe out poverty alone, the Bank can’t do this alone, nor can the DPs, or NGOs or individuals acting alone. But together it can be done, it has been done--we have global evidence that the needle on poverty can move when you have a clear development vision, one in which long-term goals trump short-term interests, a national vision which has unwavering commitment from leadership, and is embraced by citizens, and supported by friends and partners in which everyone brings their best game forward. I was having lunch recently with a very successful businessman in New York. Because he was well known people kept interrupting him with requests. I asked later why he so politely allowed these interruptions. He gave a simple answer I will never forget: “you never know where a good idea will come from.” And I realized that much of this person’s enormous success came from listening to a lot of different people even when it wasn’t convenient. It occurred to me that this message is highly relevant today in Malawi’s fight against poverty. Ending poverty needs the wisdom and experience of the older generation and it needs the energy and restlessness of the youth. It needs innovators and new thinking. So it makes sense to keep minds, ears, hearts open to hear all the voices. You never know where good ideas will come from! And that is why we launched this competition. There is the famous young Malawian who constructed the village windmill. But there are many other invisible heroes out there, walking all over the country today, trying to make things better. People who refused to be defined by poverty or despair and are out there, trying to make a difference. We need to hear from them. Let me say a word about the special role of youth and artists in the fight to end poverty. These days we hear a lot about the need for a “change in mindset”; from political leaders and citizens alike. And who influences mind set more than artists? Throughout history art and artists have played a catalytic role in shaping society and social progress. Artists can be change agents—who use their influence and talent to challenge, provoke, inspire. A single photograph can replace a thousand policy papers and propel people to action. Artistic expression can create jobs, drive tourism and commerce and not just in rich countries. Artists and youth are not often part of the discussions about poverty and development, yet they have such a contribution to make. And youth - they will inherit the consequences of decisions made today. They therefore need to be inside the conversation. It is in this context that we thought of having a special category for these young people below the age of 40 in this poverty competition. I hope you enjoy the evening as we present the prizes. I also encourage you to mingle with the winners and judges during the cocktail—they would be happy share their experiences of this process. Let me conclude by saying that Malawi at 50 faces fierce challenges but enormous opportunities. The nation has already accomplished many things—against difficult odds---and these gains should be recognized and protected. Poverty has proven itself a stubborn enemy but change is possible, big changes. As you heard the great Nelson Mandela say, since so many development problems are man-made they can also be addressed by the actions of men (and women) with strong vision and a shared line of sight. It is within the power of everyone sitting in this room today to be co-creators of a better future, of turning dreams into reality. As the WBG, after 50 years, we stand ready to continue our long partnership and walk with Malawi, no, run with you, to a place we hope is not too far in the distance, where citizens have grabbed hold of their future and changed their destiny, where Malawi is on the move and has left poverty behind. Thank you very much.","upi":"000340678","master_date":"2015-12-09T12:48:00Z","master_date_srt":"2015-12-09T12:48:00Z","master_recent_date_srt":"2015-12-09T12:48:00Z","master_recent_date":"2015-12-09T12:48:00Z","masterregion_exact":"Africa","short_description":"In commemoration of the 50 anniversary of the country’s partnership with the World Bank, citizens offered solutions to ending poverty through their art, essays and poetry.","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":" Good Evening It is tremendously exciting to be up on this stage at the 50 year mark of the World Bank Group’s partnership with Malawi and to have the opportunity to look both backwards and forwards. The World Bank and Malawi have been working together for half a century. We have enjoyed a very strong relationship and have done many good things together in pursuit of Malawi’s development. Since its independence, Malawi can count many achievements. It has established a working democracy and sustained peace both internally and with its neighbors. It is making hard won progress in a number of areas of human development, including on several of MDG targets. The country has increased primary school enrolment and access to safe water, built road networks as well as institutions. During this period the Bank has actively supported the country’s efforts. We have done so in three ways: first through lending, which has totaled about USD$4.3 billion. We plan to continue a strong program of lending in the future. I want to note here – because many aren’t aware—that roughly half of World Bank support comes in the form of grants (free) and the other half is in no-interest loans payable over 38 years with a 6 years grace period. The second form of assistance is policy advice. As a multilateral institution our job is to provide objective, technically sound analysis to our member states drawing on global experience from our thousands of operations in 188 countries. And we have also provided technical support to help Malawi build its institutions. Over the decades, we have also built relationships with many actors; many of you are represented here tonight. I am pleased to say that our primary relationship—with Government—remains strong and steadfast, with productive engagement and open dialogue across a wide range of issues. Together with the IFC and MIGA we work directly with the private sector, we also interact regularly with NGOs, civil society, the media, policy institutes and academia. We also fund programs jointly with other development partners. So, on behalf of myself, our Director Bella Bird, our Vice President for Africa Makhtar Diop and our World Bank President Jim Kim, I would like to say thank you very much: to the Government and people of Malawi; to all of our development partners here tonight for being such good collaborators; and to all of the WBG staff who have worked so hard to assist Malawi over the last few decades and continue to do so every day. I promise I will not stand up here and list all of the projects the World Bank has invested. But I can say with great conviction that we have been engaged intensively across the waterfront to support government programs that have really made a difference to people’s lives. Our first project signed in October 1966 provided the funding for the design of the M1 from Zomba to Lilongwe, and the M4 from Lilongwe to Mchinji. Those roads have been there for a long time and are essential to Malawi’s economy, though very few people traveling on them today know they were originally financed by the World Bank. I think that our investment in infrastructure counts among our main achievements. Beyond roads may I quickly just mention a few you may recognize:In education - teens of the 70’s know the four national secondary schools we financed– Mzuzu Government, Lilongwe Girls, Dedza, and Blantyre Secondary Schools; We later supported 20 more in both urban and rural areas, plus thousands of primary school classrooms through MASAF;In water - Mulunguzi Dam on Zomba Mountain now serving Zomba, and water supply schemes all over the country;In agriculture –the rehabilitation of the four major national irrigation schemes – Muona, Nkhate, Likangala and Limphasa. The other area of deep engagement has been in the macroeconomic arena. For many people macro policy is rather dry and abstract and it can be hard to imagine how it affects poor people out in the villages, but the truth is it has an enormous impact. High inflation drives up prices and hurts the poor most—high interest rates, currency instability discourages investors which means fewer jobs, and exports. Macroeconomic stability always and everywhere lays at the heart of development --without it, it is very hard to achieve growth needed to reduce poverty, which is why we are engaged in this “heartbeat” area. And finally, the World Bank has been able to come in with emergency support in times of crisis, such the $80m we provided in the aftermath of the floods this year, along with $75m for social safety nets to help the flood affected. We are fortunate in the fruitful partnership we have built over the past half century, and tonight, at this anniversary milestone, we renew our commitment to help the country eliminate extreme poverty and achieve growth and shared prosperity, with the utmost conviction and sense of urgency. Now, looking forward, the main challenge before us is the persistence of poverty—Malawi is just not winning this battle yet. Today Malawi is one of the world’s poorest countries with a GNI per capita of $250. According to World Bank estimates, almost 70 percent of the population are projected to live below the poverty line in 2015. That is living on less than $1.90 per day. Clearly, this is no time for complacency. Not for Malawi nor for its development partners. Indeed at 50, Malawians all over the country have been reflecting on how far the nation has come since independence. Opinions vary about how and why Malawi is where it is today, and what should be done next. But the common theme seems to be a thirst for transformation – a sense that Malawi needs to step on the accelerator so as not to be left behind and address the political, economic and institutional barriers that have prevented greater progress. Malawi at 50 is simply too vulnerable. Let me paint a picture of what I mean here by vulnerable. An economy dependent on rain fed agriculture and a few commodities; weak integration with the regional economy; high dependence on foreign aid; and elusive macro-stability. In the longer term, climate change and uncontrolled population growth constitute perhaps the greatest threat to Malawi’s future generations. We have already seen the devastation of the flooding this year, and more climate uncertainty is expected. None of this is breaking news to anyone in the room. These are chronic challenges Malawians have been grappling with for decades. To solve these problems is not easy, otherwise it would have already happened. However, there is no “natural state” or reason to conclude that poverty should remain so high in Malawi. The country, your country, has so many advantages from land and water resources, freedom from conflict and civil strife, to the natural talent of its people. Other countries in the region are achieving high rates of economic growth and impressive poverty reduction. And so can Malawi. To leverage the country’s potential requires institutions that work, are not plagued by corruption and inefficiency. Malawi’s civil service was once a source of national pride and can be so again. Reform efforts are underway and these deserve support. Cashgate was a harsh a wakeup call. But it is also an opportunity to get basic systems working again. In a young democracy episodes like cashgate can be a defining moment and a chance to set things on a better course, permanently. Making it easier for businesses to operate and invest can unlock the considerable potential of the private sector, as can investing in human beings-human capital to equip the next generation to compete in the global economy. And there are several opportunities for regional integration that Malawi could seize right now within Africa; greater regional connectivity and trade can help Malawi deal with shocks. Irrigated agriculture offers great potential for take-off growth-in the Shire Valley for example. There is a lot of dynamism in the neighborhood that Malawi could leverage - the SADC market is very close by and very large. So, it is indeed possible for Malawi to make a quantum leap forward in the fight against poverty—It is not an easy fight and requires all forces going to battle in the same direction; with creativity, energy, focus. The Government can lead but it can’t wipe out poverty alone, the Bank can’t do this alone, nor can the DPs, or NGOs or individuals acting alone. But together it can be done, it has been done--we have global evidence that the needle on poverty can move when you have a clear development vision, one in which long-term goals trump short-term interests, a national vision which has unwavering commitment from leadership, and is embraced by citizens, and supported by friends and partners in which everyone brings their best game forward. I was having lunch recently with a very successful businessman in New York. Because he was well known people kept interrupting him with requests. I asked later why he so politely allowed these interruptions. He gave a simple answer I will never forget: “you never know where a good idea will come from.” And I realized that much of this person’s enormous success came from listening to a lot of different people even when it wasn’t convenient. It occurred to me that this message is highly relevant today in Malawi’s fight against poverty. Ending poverty needs the wisdom and experience of the older generation and it needs the energy and restlessness of the youth. It needs innovators and new thinking. So it makes sense to keep minds, ears, hearts open to hear all the voices. You never know where good ideas will come from! And that is why we launched this competition. There is the famous young Malawian who constructed the village windmill. But there are many other invisible heroes out there, walking all over the country today, trying to make things better. People who refused to be defined by poverty or despair and are out there, trying to make a difference. We need to hear from them. Let me say a word about the special role of youth and artists in the fight to end poverty. These days we hear a lot about the need for a “change in mindset”; from political leaders and citizens alike. And who influences mind set more than artists? Throughout history art and artists have played a catalytic role in shaping society and social progress. Artists can be change agents—who use their influence and talent to challenge, provoke, inspire. A single photograph can replace a thousand policy papers and propel people to action. Artistic expression can create jobs, drive tourism and commerce and not just in rich countries. Artists and youth are not often part of the discussions about poverty and development, yet they have such a contribution to make. And youth - they will inherit the consequences of decisions made today. They therefore need to be inside the conversation. It is in this context that we thought of having a special category for these young people below the age of 40 in this poverty competition. I hope you enjoy the evening as we present the prizes. I also encourage you to mingle with the winners and judges during the cocktail—they would be happy share their experiences of this process. Let me conclude by saying that Malawi at 50 faces fierce challenges but enormous opportunities. The nation has already accomplished many things—against difficult odds---and these gains should be recognized and protected. Poverty has proven itself a stubborn enemy but change is possible, big changes. As you heard the great Nelson Mandela say, since so many development problems are man-made they can also be addressed by the actions of men (and women) with strong vision and a shared line of sight. It is within the power of everyone sitting in this room today to be co-creators of a better future, of turning dreams into reality. As the WBG, after 50 years, we stand ready to continue our long partnership and walk with Malawi, no, run with you, to a place we hope is not too far in the distance, where citizens have grabbed hold of their future and changed their destiny, where Malawi is on the move and has left poverty behind. Thank you very much.","date":"2015-12-09T12:48:00Z","contenttype":"Speeches and Transcripts"},"_12b7a654e7ed393e707e6b776eceb3cfc33f9dd5":{"id":"12b7a654e7ed393e707e6b776eceb3cfc33f9dd5","title":"Remarks by World Bank Group President Jim Yong Kim at the launch of the Africa Climate Business Plan","countrycode":"FR","country":"France","country_exact":"France","countrycode_exact":"FR","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2015/11/30/remarks-by-world-bank-group-president-jim-yong-kim-at-the-launch-of-the-africa-climate-business-plan-at-cop21-in-paris","count":"France","descr":"Remarks by World Bank Group President Jim Yong Kim at the launch of the Africa Climate Business Plan at COP21 in Paris","keywd":"subject:climate finance,regions:Europe and Central Asia,subject:climate change,country:France,regions:Africa","lang":{"0":{"cdata!":"English"}},"admreg":"Africa,Europe and Central Asia","topic":"Climate Finance,Climate Change","cqpath":"/content/wb-home/en/news/speech/2015/11/30/remarks-by-world-bank-group-president-jim-yong-kim-at-the-launch-of-the-africa-climate-business-plan-at-cop21-in-paris","regionname":"Europe and Central Asia,Africa","wcmsource":"cq5","content":" It is a pleasure for me to be part of this event with Prime Minister Neves of Cape Verde, Prime Minister Trovoada of Sao Tome and Principe, President Ali Bongo of Gabon, President Macky Sall of Senegal, President Boni Yayi of Benin, and President Gnassingbe of Togo, Minister Girardin of France and my World Bank colleagues Makhtar Diop and Jamal Saghir. More than two years ago, the World Bank Group published a series of reports called “Turn Down the Heat.” They produced forecasts showing that the hard-won development gains of the developing world risk being undone because of climate change. Natural disasters will become worse. There will be more sources of tension and conflict, more migration, more instability. A couple of weeks ago, we published another report called “Shockwaves” that focused on the linkages between climate change and poverty. It found that unless countries adopt good development practices, climate change may plunge 100 million more people into poverty by 2030. Of those 43 million would be in Africa alone. My first message today is that, based on scientific evidence, COP21 needs to deliver strong climate action, both in terms of reducing greenhouse gas emissions, and boosting support for adaptation. The World Bank Group has been deeply involved in setting up the Carbon Pricing Leadership Coalition. We must support carbon pricing if we are to reduce greenhouse gas emissions. But we also need to mobilize large support for adaptation. The World Bank Group has pledged to increase the share of development funding with climate benefits by one-third by 2020, to as much as $29 billion annually, and much of this funding will support climate adaptation. My second message is about justice.  African leaders will rightly say that they've had very little role in putting the carbon in the air, but that their countries suffer greatly from the impact of climate change – in terms of extreme weather events and the loss of arable land, to name just two issues.  If things continue to worsen, some 40 percent of the land that's currently growing maize in Africa will be barren by 2030.  And any time there’s an extreme weather event, the amount of damage to low-income countries in Africa will be much greater than to the high-income countries in Europe and elsewhere. We want to put adaptation on the table as one way of addressing directly the justice issues that we have to tackle here in Paris. Our hope is that African leaders and others from the lowest income countries will recognize that this is not just about mitigation.  This is not just about taking carbon out of the air to preserve a future for the wealthy countries -- this is also about ensuring that we are addressing directly the justice issues that confront us when we look at the impact of current levels of temperature rise on so many in Sub-Saharan Africa. My third message follows the last point. Africa needs much more support than it’s receiving now. The mismatch between needs and funding levels going to Africa is striking: $3 billion in climate assistance flows to Africa every year, relative to needs that could escalate to $20 to $100 billion dollars needed annually in the case of a 4 degree Celsius warmer world. Let me conclude by saying that the outcome of COP21 is critical for Africa: Unless decisive climate action is agreed in Paris, climate variability and change will jeopardize Africa’s hard-won development achievements and its aspirations for further growth and poverty reduction. The World Bank Group is ready to do its share, and we have laid it out clearly in the “Africa Climate Business Plan.” We were inspired by African leaders who worked closely with us to put together this ambitious plan.  Thank you very much. ","content_1000":" It is a pleasure for me to be part of this event with Prime Minister Neves of Cape Verde, Prime Minister Trovoada of Sao Tome and Principe, President Ali Bongo of Gabon, President Macky Sall of Senegal, President Boni Yayi of Benin, and President Gnassingbe of Togo, Minister Girardin of France and my World Bank colleagues Makhtar Diop and Jamal Saghir. More than two years ago, the World Bank Group published a series of reports called “Turn Down the Heat.” They produced forecasts showing that the hard-won development gains of the developing world risk being undone because of climate change. Natural disasters will become worse. There will be more sources of tension and conflict, more migration, more instability. A couple of weeks ago, we published another report called “Shockwaves” that focused on the linkages between climate change and poverty. It found that unless countries adopt good development practices, climate change may plunge 100 million more people into poverty by 2030. Of tho","displayconttype":"Speeches and Transcripts","originating_unit":"Climate Change, GCC","originating_unit_exact":"Climate Change, GCC","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Africa,Europe and Central Asia","masterconttype":"Speeches and Transcripts","node_id":"12b7a654e7ed393e707e6b776eceb3cfc33f9dd5","wn_title":"Remarks by World Bank Group President Jim Yong Kim at the launch of the Africa Climate Business Plan","wn_desc":" It is a pleasure for me to be part of this event with Prime Minister Neves of Cape Verde, Prime Minister Trovoada of Sao Tome and Principe, President Ali Bongo of Gabon, President Macky Sall of Senegal, President Boni Yayi of Benin, and President Gnassingbe of Togo, Minister Girardin of France and my World Bank colleagues Makhtar Diop and Jamal Saghir. More than two years ago, the World Bank Group published a series of reports called “Turn Down the Heat.” They produced forecasts showing that the hard-won development gains of the developing world risk being undone because of climate change. Natural disasters will become worse. There will be more sources of tension and conflict, more migration, more instability. A couple of weeks ago, we published another report called “Shockwaves” that focused on the linkages between climate change and poverty. It found that unless countries adopt good development practices, climate change may plunge 100 million more people into poverty by 2030. Of those 43 million would be in Africa alone. My first message today is that, based on scientific evidence, COP21 needs to deliver strong climate action, both in terms of reducing greenhouse gas emissions, and boosting support for adaptation. The World Bank Group has been deeply involved in setting up the Carbon Pricing Leadership Coalition. We must support carbon pricing if we are to reduce greenhouse gas emissions. But we also need to mobilize large support for adaptation. The World Bank Group has pledged to increase the share of development funding with climate benefits by one-third by 2020, to as much as $29 billion annually, and much of this funding will support climate adaptation. My second message is about justice.  African leaders will rightly say that they've had very little role in putting the carbon in the air, but that their countries suffer greatly from the impact of climate change – in terms of extreme weather events and the loss of arable land, to name just two issues.  If things continue to worsen, some 40 percent of the land that's currently growing maize in Africa will be barren by 2030.  And any time there’s an extreme weather event, the amount of damage to low-income countries in Africa will be much greater than to the high-income countries in Europe and elsewhere. We want to put adaptation on the table as one way of addressing directly the justice issues that we have to tackle here in Paris. Our hope is that African leaders and others from the lowest income countries will recognize that this is not just about mitigation.  This is not just about taking carbon out of the air to preserve a future for the wealthy countries -- this is also about ensuring that we are addressing directly the justice issues that confront us when we look at the impact of current levels of temperature rise on so many in Sub-Saharan Africa. My third message follows the last point. Africa needs much more support than it’s receiving now. The mismatch between needs and funding levels going to Africa is striking: $3 billion in climate assistance flows to Africa every year, relative to needs that could escalate to $20 to $100 billion dollars needed annually in the case of a 4 degree Celsius warmer world. Let me conclude by saying that the outcome of COP21 is critical for Africa: Unless decisive climate action is agreed in Paris, climate variability and change will jeopardize Africa’s hard-won development achievements and its aspirations for further growth and poverty reduction. The World Bank Group is ready to do its share, and we have laid it out clearly in the “Africa Climate Business Plan.” We were inspired by African leaders who worked closely with us to put together this ambitious plan.  Thank you very much. ","upi":"000401363","master_date":"2015-11-30T20:24:00Z","master_date_srt":"2015-11-30T20:24:00Z","master_recent_date_srt":"2015-11-30T20:24:00Z","master_recent_date":"2015-11-30T20:24:00Z","masterregion_exact":"Africa,Europe and Central Asia","short_description":"Remarks by World Bank Group President Jim Yong Kim at the launch of the Africa Climate Business Plan at COP21 in Paris","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa,Europe and Central Asia","desc":" It is a pleasure for me to be part of this event with Prime Minister Neves of Cape Verde, Prime Minister Trovoada of Sao Tome and Principe, President Ali Bongo of Gabon, President Macky Sall of Senegal, President Boni Yayi of Benin, and President Gnassingbe of Togo, Minister Girardin of France and my World Bank colleagues Makhtar Diop and Jamal Saghir. More than two years ago, the World Bank Group published a series of reports called “Turn Down the Heat.” They produced forecasts showing that the hard-won development gains of the developing world risk being undone because of climate change. Natural disasters will become worse. There will be more sources of tension and conflict, more migration, more instability. A couple of weeks ago, we published another report called “Shockwaves” that focused on the linkages between climate change and poverty. It found that unless countries adopt good development practices, climate change may plunge 100 million more people into poverty by 2030. Of those 43 million would be in Africa alone. My first message today is that, based on scientific evidence, COP21 needs to deliver strong climate action, both in terms of reducing greenhouse gas emissions, and boosting support for adaptation. The World Bank Group has been deeply involved in setting up the Carbon Pricing Leadership Coalition. We must support carbon pricing if we are to reduce greenhouse gas emissions. But we also need to mobilize large support for adaptation. The World Bank Group has pledged to increase the share of development funding with climate benefits by one-third by 2020, to as much as $29 billion annually, and much of this funding will support climate adaptation. My second message is about justice.  African leaders will rightly say that they've had very little role in putting the carbon in the air, but that their countries suffer greatly from the impact of climate change – in terms of extreme weather events and the loss of arable land, to name just two issues.  If things continue to worsen, some 40 percent of the land that's currently growing maize in Africa will be barren by 2030.  And any time there’s an extreme weather event, the amount of damage to low-income countries in Africa will be much greater than to the high-income countries in Europe and elsewhere. We want to put adaptation on the table as one way of addressing directly the justice issues that we have to tackle here in Paris. Our hope is that African leaders and others from the lowest income countries will recognize that this is not just about mitigation.  This is not just about taking carbon out of the air to preserve a future for the wealthy countries -- this is also about ensuring that we are addressing directly the justice issues that confront us when we look at the impact of current levels of temperature rise on so many in Sub-Saharan Africa. My third message follows the last point. Africa needs much more support than it’s receiving now. The mismatch between needs and funding levels going to Africa is striking: $3 billion in climate assistance flows to Africa every year, relative to needs that could escalate to $20 to $100 billion dollars needed annually in the case of a 4 degree Celsius warmer world. Let me conclude by saying that the outcome of COP21 is critical for Africa: Unless decisive climate action is agreed in Paris, climate variability and change will jeopardize Africa’s hard-won development achievements and its aspirations for further growth and poverty reduction. The World Bank Group is ready to do its share, and we have laid it out clearly in the “Africa Climate Business Plan.” We were inspired by African leaders who worked closely with us to put together this ambitious plan.  Thank you very much. ","date":"2015-11-30T20:24:00Z","contenttype":"Speeches and Transcripts"},"_26a983ba97432afc7a4fee1dd469af87b5b43d2f":{"id":"26a983ba97432afc7a4fee1dd469af87b5b43d2f","title":"Media Call: New Africa Climate Plan and COP21 with President Jim Yong Kim","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2015/11/24/media-call-new-africa-climate-plan-and-cop21-with-world-bank-group-president-jim-yong-kim","descr":"Transcript\nEmbargoed Media Call – \nNew Africa Climate Plan and COP21 with World Bank Group President Jim Yong Kim\nWorld Bank Group President Jim Yong Kim","lang":{"0":{"cdata!":"English"}},"cqpath":"/content/wb-home/en/news/speech/2015/11/24/media-call-new-africa-climate-plan-and-cop21-with-world-bank-group-president-jim-yong-kim","wcmsource":"cq5","content":" MR. DONNELLY:  Thank you very much.  And thank you, everyone, for joining the call. This call will be focusing on two issues:  One is in advance to COP21 in Paris; and the second one is the release of the Africa Business Plan, which is a look at climate, how Africa can deal with climate issues moving forward. All the comments in the call are embargoed until 3:00 p.m. Eastern Standard Time today, as is the report. So, I will turn this over to President Jim Yong Kim of the World Bank. And I also have here with me Rachel Kyte, who is Vice President and Special Envoy for Climate Change at the World Bank; And Makhtar Diop, who is Vice President for the Africa Region. Dr. Kim will read a statement and then we'll take your questions. Thank you. DR. KIM:  Thank you very much, everyone, for joining the call. Today, I will talk about two issues:  First, we'll look ahead to COP21 in Paris; and second, I'll comment on a report we're releasing today that gives Sub-Saharan Africa a business plan to prepare for climate change in the years ahead. As we go into this meeting, the world is full of heartache for the people of Paris, as well as for the people of Beirut, Ankara, Bamako, northeastern Nigeria, and many other communities that have suffered from senseless and random violence from extremists. In Paris, it will be a very sensitive time and security will be tight.  I want to commend President Hollande and his government for moving ahead with the Conference of the Parties Summit. The attack on Paris will change this summit.  Delegations will be smaller and we will not be marching through the streets as originally planned. But we will demonstrate our solidarity for the future of our planet.  My strong belief is that the leaders of the world will come together in Paris and endorse an ambitious agreement to tackle climate change and preserve our planet for all of us, but especially for our children and grandchildren. Just a few weeks after the horrific attacks, Paris will soon be known as the place where world leaders stood together on the right side of history. Ahead of the Paris talks, more than 160 countries have submitted their national plans, the INDCs, the Intended Nationally Determined Contributions, that show trillions of dollars of potential demand for climate investments. The World Bank Group is stepping up now to help countries meet their immediate challenges and also to help countries deliver on their national plans.  We pledged a one-third increase in direct funding for climate and overall could see an annual funding total of as much as $29 billion by 2020. Climate change is a grave threat to all of us, undermining stability and peace by intensifying stress over water access, food insecurity, and vulnerability to storms and heat waves.  In addition, this year, we're also witnessing the current El Nino phenomenon, which forecasters say could be the most severe in a half-century.  Already, coastal waters off Peru are 6 degrees Celsius warmer than normal, and forecasters say that will likely lead to more extreme weather from droughts, to flooding, to wildfires across the world. Now, I want to say a few words about the Africa Business Climate Plan, which was prepared in consultation with African governments and, in many cases, builds on existing plans and programs.  This business plan gives Africa a blueprint for climate action, starting on the day after a Paris agreement. The World Bank's plan is designed to help the region adapt to the changing climate through a number of concrete actions relating to land, water, agriculture, and cities in Africa.  It also calls for a major increase in renewable energy.  Our report found that, without development that helps countries prepare for climate change, 43 million people, additional, in Sub-Saharan Africa, mostly in Ethiopia, Nigeria, Tanzania, Angola, and Uganda could fall into extreme poverty by 2030.  This will be due to lower crop yields, higher food prices, and adverse health effects. The report also finds that the current volume of climate finance flowing to Africa is not enough.  Our Africa Business Plan aims to raise $16 billion a year in climate finance by 2020, of which $5.7 billion could come from IDA, our fund for the poorest countries.  The rest could come from a variety of sources, including private sector, bilateral and multilateral sources, and dedicated climate finance resources such as the Climate Investment Fund and the Green Climate Fund. I thank you for your attention and will now take your questions. MR. DONNELLY:  Okay, Operator, please ask reporters to line up questions. OPERATOR:  Our first question will come from the line of Mr. Andrew Mayeda of Bloomberg. Sir, your line now is open.  You may proceed. MR. MAYEDA:  Hi, Mr. Kim.  A question for you on the talks in Paris.  So, how optimistic are you that, you know, a meaningful global target can be reached and what do you think are the major obstacles to that goal? DR. KIM:  Well, you know, we now have 130-plus heads of state who are coming to Paris, and this is even after the terrorist attacks.  And so, I think that world leaders are coming with a sense of seriousness about reaching an agreement.  You know, if you just look at the current INDCs, it looks like, with full funding, we'll reach something like 2.7 degrees, and it's a little bit higher than we would have liked, but my own sense is that there's a very strong sense of destiny in that everyone who comes to Paris will want to see an agreement. Now, there are many issues that still have to be worked out.  There are many sort of open parentheses where we have to fill in specific language.  We believe that one of the obstacles in the past is less an obstacle than we had thought.  We believe that there is a credible path toward reaching the $100 billion a year by 2020 that was promised in Copenhagen. So, I don't think that the negotiations will be simply or easy, they never are.  Any global action is always very difficult, but I remain optimistic, because in the G20 meetings and in talking with many, many leaders, I think there is now a much deeper appreciation, understanding of the importance of sending a powerful, ambitious message out of Paris. MR. MAYEDA:  And just as a follow-up, how credible should the world see the--any U.S. promises at this--at these meetings to be given the fact that the administration, you know, kind of has a limited shelf life at this point.  Members of Congress have sent letters to the President stating that they will try and obstruct any agreement.  How credible do you think U.S. pledges in this regard should be seen as? DR. KIM:  You know, we believe, first of all, that both President Obama and Secretary John Kerry have been absolutely committed advocates of dramatic and sustained action on climate change. You know, we don't comment on individual domestic political discussions, but I'll tell you this:  I believe that the U.S. is negotiating in good faith.  I believe, as a citizen of the United States--I believe that the understanding of the importance of tackling climate change is very well understood by the majority of Americans.  And I think that, as events like El Nino, this year's El Nino, comes to pass, as ever, I think the understanding of just how severe the problem is that we're facing and just how important a concerted global action will be in the future, I think more and more Americans will understand that, and I believe that they will communicate that to their elected representatives evermore as time goes on. The science on this is absolutely indisputable, and anyone who is disputing the science around manmade climate change is not disputing the specific science, they're disputing science as a whole, because there are very few things in science--and I'm a medical doctor--for which there is 98 percent agreement.  And I think that it's not a scientific debate; it's a political debate. But moreover, I think that Americans are coming to realize that this is also a moral debate.  It's about the kind of world we leave our children.  And so, I believe that the U.S. will be on the right side of history going forward. OPERATOR:  Thank you.  Our next question comes from the line of Megan Rowling from Reuters. Ma'am, now your line is open. MS. ROWLING:  Hello.  Yeah, I'd like to ask, given that the Africa Climate Business Plan is very heavily focused on adaptation and clearly shows a desire to get more money flowing for adaptation in Africa, do you believe that there should be a commitment on increasing the amount of money going towards adaptation vis-à-vis mitigation in the Paris outcome?  And if so, how do you think that should be expressed? And just one other small question:  I think you mentioned $16 billion a year for the Africa Climate Business Plan, but my reading was 16 billion between 2016 and 2020.  I'm just wondering if you can confirm that figure.  Thanks. DR. KIM:  Let me clarify.  I misread the text.  It is $16 billion in the periods that you did mention.  Yes, that's correct. And then, I'm going to ask Rachel to comment on the mix of mitigation and adaptation funding. MS. KYTE:  So, there are a number of proposals in the negotiations for financial targets.  We don't comment on the negotiations, per se, but I think that we have two main points that we've been talking to, our shareholders and the countries in which we work about. One is that there needs to be a reasonably dramatic increase in the amount of investments going into resilience, between now and 2020.  Obviously, the Paris negotiations are for the period 2020 on.  And my colleague, Makhtar, will talk about that in a moment.  And then, secondly, there are things we're committed to as a multilateral development bank, together with all the other multilateral development banks, that would boost resilience and adaptation funding.  So, each of us, when we made our commitments to increase climate finance last month in the meetings in Lima indicated that, as we did so, we would increase the amount of financing going into adaptation. I think there's also one other thing which is that there is a great focus in Paris, and probably coming out of Paris, around the role of private financing and private sector co-financing into adaptation.  This has been under-emphasized up to now, but the way in which the private sector will be mobilized and private financing will be mobilized around adaptation will be very important.  So, for very large companies that have assets at risk, we're starting to see them with a capital expenditure, et cetera, understanding the risk from if they don't respond to adaptation needs, but we're seeing more and more companies starting to think that through.  Obviously, you've seen the announcements from the insurance industry, as well. But to Makhtar on the specifics of Africa. MR. DIOP:  Thank you very much. And on adaptation, indeed, it is something that is essential for Africa, and already things are happening.  So, let me just step back and look at Power Africa Initiative, for instance, for the U.S.  The initiative is trying to mobilize the private sector to finance the effort of energy access in Africa.  And as we are working with the U.S. companies, we are trying to bring them renewable energy and to have activities which allow them to invest heavily in renewable energy. For instance, in the side area we are working on a project in Banda (Banda Gas to Power Project for Mauritania, Senegal and Mali), which aims at transforming gas to power.  We are working on many hydro projects and have a huge potential on solar.  We have, today, a potential of more than 1,000 gigawatts of solar in Africa, 15 gigawatts of geothermal, and 45 of hydro. So, all these are areas in which the private sector is very interested.  So, the $5.7 billion that we will be putting in IDA will have leveraging investment in renewable energy and smart agriculture. DR. KIM:  You know, the point here, though, is that I think the Africans are coming into this meeting, and I think they're thinking about the very clear justice issues that are very much present around climate change.  And any African leader will tell you that they've had very little role in putting the carbon in the air that's currently in the air but that they suffer most from the impact of climate change: extreme weather events, the loss of arable land.  Some 40 percent of the land that's currently growing maize in Africa won't be able to do so by 2030.  Any time there is an extreme weather event, the amount of damage to countries, low-income countries in Africa, is much greater than to the high-income countries in Europe and elsewhere. But it goes even further than that, the greatest harm is to the poorest 20 percent of even low-income countries.  In other words, the poorest in poor countries are affected much more, many times more, than the more well-to-do in those countries from extreme weather events. And so, this is an effort to put adaptation on the table as one way of addressing directly the justice issues that we have to tackle going into Paris. Our hope is that African leaders and others from the lowest income countries will recognize that this is not just about mitigation.  This is not just about taking carbon out of the air to preserve a future for the wealthy countries, but this is also about ensuring that the World Bank Group and others are alive to and are addressing directly the justice issues about the impact of current levels of the temperature rise on so many in Sub-Saharan Africa. OPERATOR:  Thank you. The next question comes from the line of Ms. Lisa Friedman of ClimateWire.Ma'am, your line is open. MS. FRIEDMAN:  Hi.  Thanks very much for doing this call.  I have a question on coal development, and the World Bank, after a long struggle, was one of the first ever to impose restrictions and guidelines on coal, and we've seen a number of countries, and most recently the OECD, restrict coal, and we're starting to see a real backlash, the Environment Minister of India the other day in an interview called it unacceptable and to put restrictions on developing countries to grow.  And I'm wondering if one of you can talk about how that discussion is developing.  Is there really yet enough assistance out there help countries like India and Africa to develop with clean energy if avenues to public money for coal is being cut off more and more?   Do you see this going in the right direction and what kind of--what are the biggest challenges here? MS. KYTE:  Lisa, it's Rachel. MS. FRIEDMAN:  Hi, thank you. MS. KYTE:  Look, I think two main things. First of all, I think that there is a legitimate concern among countries that have very brown economies that the international community is going to be with them every step of the way as they transition to a greener energy mix and a greener future, and I think that's a legitimate concern. I mean, once we leave Paris and we leave all this hot air and rhetoric and we have a strong agreement, then we have to work hand-in-hand as an international community to make the energy mix cleaner, to move the economy onto a lower carbon trajectory, and that's going to require really hard work and difficult policy choices in many, many economies, from West Virginia and Kentucky through to Northeastern India, through to Indonesia and Australia and many others in between. So, I think that there's real seriousness around sitting down and working through how we help those countries that have been very dependent on coal become less dependent on coal.  But that's not a debate that's face-to-face in those countries, and you will see in Paris very large announcements coming from India and other places around their total commitment to becoming leaders in cleaner technologies, as well as working through the transition to be more and more efficient in the use of any fossil fuels that are in their energy mix. So, you know, I think that there's been some extraordinary developments in the coal industry over the past couple of years.  There have been some extraordinary developments in the investment community as they look at the long-term risks associated with intense exposure to carbon.  The most recently hinted at is the move by Alliance which I think is in the media this week.  So, we are seeing long-term investors taking a different view of how much carbon they want to have in their portfolio.  So, I think that we have got all kinds of things happening, but the most important thing is that, after Paris, there will have to be a very serious conversation amongst entities and organizations and countries around engineering this transition to low-carbon growth. And you know, we in the World Bank have been very, very clear for the last few years that we will be on the front end of helping countries manage that transition, and recognizing that some countries do have coal in their mix means that we will have to work with them carefully through that transition. So, yeah, it's not a coal/no coal debate; it's about how quickly and how smoothly can we have an orderly transition to the low-carbon economies, and we'll be there across all of our clients to have that conversation. DR. KIM:  One other thing, Lisa. You know, if you just look at some of the development--you know, when I took this job three-and-a-half years ago, there was great excitement about price of solar energy going down to 15 cents a kilowatt hour and today we're talking about 5 or 6 cents a kilowatt hour. And moreover, I think we just have to get much more serious about exploiting different kinds of renewable energy.  For example, in the advanced economies in OECD countries, more than 90 percent of all exploitable hydroelectric power is already being exploited; whereas, in Sub-Saharan Africa it's less than 10 percent.  We just have to find a path toward getting--you know, getting hydroelectric power going in Sub-Saharan Africa. Also, you know, there's some very exciting developments.  For example, the folks who put together the extraordinary geothermal system in Iceland are now working with--in Ethiopia in the Rift Valley and there is this strong sense that geothermal capacity will be there. And also, I think you have to look seriously at Prime Minister Modi's commitment to solar.  It's an enormous commitment to solar over time.  They also happen to have enormous need for energy at the moment. MR. DONNELLY:  This is John Donnelly.  Just two quick notes:  One is that we'll send a transcript of this call to all participants afterwards--so, sometime later today. And secondly, after you ask your question, just please put your phone on mute.  Thank you. OPERATOR:  Our next question comes from the line of Mr. Michael Igoe of Divest-Invest.  Sir, your line now is open. MR. IGOE:  Hi, thanks very much and thank you all for holding this call. Dr. Kim, you mentioned your optimism about a path towards reaching the $100 billion in financing for adaptation.  And you also mentioned that the money that the World Bank is pointing towards here builds on existing programs in many cases. So, I guess my question is, how does the World Bank define something as \"climate adaptation funding\"?  How is that different from just \"development funding\"?  Is there any risk that institutions, if not the World Bank then perhaps others might just sort of re-label funding that goes towards programs in, you know, rural development writ large and agriculture and things that are climate-related [audio distortion]? MS. KYTE:  This is Rachel Kyte.  So, we've worked very closely with other multilateral development banks, and with other bilateral financial institutions, including the bilaterals from Europe and some of the national development banks to work through exactly what we would count as adaptation, recognizing that there's real sensitivity around double counting and the use of funds. And so, we have worked out a fairly strict methodology that we use in the World Bank Group and principles on adaptation finance which are agreed across the multilateral development banks.  And we count the incremental amount on a project that would secure its--secure an adaptation impact. So, if we're investing in a road, we wouldn’t just count the whole of the investment in the road as an adaptation project, unless that was warranted.  We would count the incremental cost on the project of building it to perhaps a different specification or building it through a different route.  That would secure its adaptation impact.  So, we're very clear about that.  That meant training all of our staff and securing the understanding of all of our task team leaders.  This has been a substantial effort by the operational staff of the World Bank Group over the past couple of years.  And we all report those numbers in the same way.       But I just want to make one thing clear:  That's development finance.  So, if we're involving--if this is a project of IDA, then we can tell you what we've spent on adaptation from IDA.  Of course, we also channel climate funds and climate finance into both mitigation and adaptation activities.  So, for example, in the climate investment funds, when we manage projects under the PPCR, which is the adaptation fund, then we would count those monies as adaptation channeled through us, as well.  But we have fairly clear methodology that we've worked through and negotiated with others, and it's publicly available on our website. MR. IGOE:  Thank you.  That's very helpful. OPERATOR:  Thank you.  The next question comes from the line of Mr. David Biello, Scientific American. Sir, your line now is open. MR. BIELLO:  Thank you.  From kind of paging through the report on the business case for Africa, I'm a little bit unclear on what the overall plan is.  Is that idea that, similar to the rest of the world, some form of industrialization would take place enabled by this increased access to power?  And if so, do you expect emissions to grow over time in Sub-Saharan Africa?  Thanks. JAMAL SAGHIR:  Currently, the continent is-- MR. DONNELLY:  Introduce yourself. JAMAL SAGHIR:  I'm Jamal Saghir, the Regional Advisor for the Africa Region at the World Bank. Currently, the continent is emitting around 3 percent of CO2.  This is equivalent to what the airline business emits per year. As the economy growth will continue, there will be a huge need for power.  Right now, 500 million people don't have access to any sort of power.  This is around 20 percent of the population of Sub-Saharan Africa have access.  We expect, if you like, to achieve 100 percent.  This would be a completely different way of looking at the energy business.  And therefore, what we have looking here is to harness the potential of geothermal, solar, wind, and hydropower and gas.  That's different way of doing business for the power sector.  Agriculture will be hit.  Agriculture right now is about 40 percent GDP in average countries like Mali or Tanzania.  We have to look at it from different perspective.  If we have to look at seed that is more resilient, to add different varieties of seeds, and that's why research as well as practical solutions will have to be put on the ground, because agriculture is a huge provider of jobs in the continent.  That's from the country perspective. In addition, the early warning signals is essential.  When Mozambique is hit by a flood, the signals start in the media.  So, the early warning and the [unclear] system that you would like to put in place is really to give a chance to the people [unclear] and Malawi (unclear) to really to prepare and really put this kind of impact. Finally, landscape management will be an important aspect, and this is relating to the coastal erosion which is affecting the West Africa coast in particular and some cities will be affected, especially the coastal cities.  So, we will have to reverse the trend we do business so that we really fight the poverty issues. DR. KIM:  And let me just try to jump in here--this is Jim Kim. The point that we were trying to make--the bigger point that we were trying to make in this publication, is that we are 100 percent committed to rapid economic growth on the African continent.  But we also believe that we can uncouple in a very significant way economic growth from the burning of fossil fuels, but in order to do so, we're going to have to move very quickly.  I think Vice President Makhtar Diop gave you very good examples of how the investments we're making are helping to crowd in and increase the interest of private sector investment in more renewable energy sources. And so, the message here has to be, one, we are completely committed to providing African countries the energy they need to grow economically. Two, we are completely committed to making the investments in adaptation that will prevent them from the huge costs of the extreme weather events related to climate change, and that--and moreover, that all of these things will lead to an even brighter future for Africa.  We are not saying to Africa, because other countries have put carbon in the air, you have to wait your turn for development.  We want to accelerate the process of African development and this has everything to do with our two goals, which is to end extreme poverty and boost shared prosperity. If we don't have success in Sub-Saharan Africa, we will not have success in reaching our goals. OPERATOR:  Thank you.  Next question comes from the line of Mr. Ed. King, Climate Home. Sir, your line now is open. MR. KING:  Thank you very much.  Two questions, if I may. Does the World Bank have any long-term de-carbonization goals for investments?  Could you offer any kind of sense of the sort of internal debate of that going on? And I also just wanted to get your views on the links between climate change and conflict.  Prince Charles--I'm sure Rachel heard Prince Charles talk about that earlier this week, and particularly about the conflict in Syria, but does the World Bank have any views on why it's important to tackle climate change in the context of instability of certain regions of the world? MS. KYTE:  Ed, hi, it's Rachel.  I look forward to seeing you next week. On your first question on de-carbonization, the Bank Group will be taking a climate action plan to its Board in 2016 following Paris.  And I don't--at this point, there's a conversation going on inside the institution about how it will position itself and where it will prioritize its work and what this means, and I'm sure that conversation will be one that some of our shareholders will raise, but you'll have to wait until then to see more. MR. DIOP:  Regarding conflict, it's a very important point, actually, one of the limits that have slowed down African growth has been the repetition of conflict, and there is a great piece by Professor Ted Miguel from Berkeley, which shows really the strong correlation between the scarcity event and conflict.  Whenever there is scarcity of water, whenever people are fighting around scarce resources, when there is no electricity, when there is erosion of soil, people are competing for these scarce resources.  That is the main source of conflict in a lot of parts of Africa. So, reducing the frequency of these events, increasing the ability to have green agriculture, smart agriculture, the ability to be able to reduce these shocks will be having definitely an impact on conflict. And I think it's important that the global public good--because it is African--the world--this conflict that Africa has been facing, and this is exactly something that the COP21 will have to discuss, because beyond the well-being of the African populations we are talking about a global public good which is creating more peace and stability around the world. DR. KIM:  And this is Jim Kim.  I just want to say that we at the World Bank Group are committed to tackling climate change in every form, including looking carefully at our investment portfolio.  It's a process that we've begun over the last year, year-and-a-half.  We're going to continue to do it.  And you know, we will report to our Board very soon. Let me just say this:  You know, it's always difficult to point to one single cause of any given war or conflict.  It's difficult to do that.  On the other hand, we are quite certain, as Makhtar just said, that the impact of climate change, especially on Sub-Saharan Africa, will be to destabilize countries. And so, the most important thing we want to put on the table with this Africa report is that, as we said, we are committed to growth, we are committed to adaptation, but we also want to stress the point that there is a tremendous sense of urgency that we all should share.  These are not things that we can put off.  And just to give you a quick example, the early warning systems--and we're just beginning now to get them in place in Africa.  In India, where we started maybe just a little bit earlier, there is a coastal area of India that, in 1999, suffered tens of thousands of deaths from a cyclone.   And during, in 2013, with Cyclone Phailin, there were only 100 deaths, and it was because of the installation of an early warning system and people were able to move to high ground very quickly. So, these are very inexpensive investments that, of course, all the developed countries already have.  And with El Nino looming, probably the biggest impact will start in December, we feel a tremendous sense of urgency to move quickly in Sub-Saharan Africa and other low-income countries that have not yet benefitted. So, we're committed as an institution, including looking at our investments, but we feel like the urgency to move in the poorest countries has to be made clear and has to be made clear in Paris. OPERATOR:  Thank you. We will have another question coming from the line of David Biello, Scientific American. Sir, your line now is open. MR. BIELLO:  Sorry, I muted myself.  Thank you for taking the second question. I'm wondering what role carbon markets might play in in mobilizing finance going forward, in your view. MS. KYTE:  Hi.  So, you know, obviously we've been working closely with many countries and states and provinces and, in fact, cities now, as well, as they think through how they want to best put a price on carbon.  Many of them are choosing to develop market-based systems.  And what we are seeing from our analysis of all of the existing schemes that are in place is that once there is a price on carbon, especially through a market-based mechanism, then the behavior of the private sector and the public procurement does shift.  And so, we see efficiency increasing, we see R&D investment moving into greener growth and into greener and cleaner technologies and processes, and we do actually see emissions come down. And I think this is one of the reasons why now, as we go into Paris, we see more and more countries in their INDCs indicating that they will put a price on carbon and most of them are indicating that they'll do that either through taxes and fees or through market-based mechanisms.  And obviously, now, there is a lot of thought being given to how all these different prices emerging from different market-based mechanisms, auctions and trading systems and then taxes and fees, how different countries will be able to link together.  And so, this is some of the long-range work we've been doing with a number of other institutions and bodies around the world. So, there is a shift in financing when one has a price on carbon, and the clear long-term signal that it sends into the economy, it does affect private investment behavior, as well as public procurement. The way that we've thought about it and the way that we've advocated together with world leaders is that it is a necessary, if insufficient, step to be taking, if you're going to use macroeconomic and fiscal policy tools to really drive carbon out of your economy.  And for that reason, we see the wider and wider--well, wider and wider political indication that more and more leaders are going to introduce carbon pricing in the near future. DR. KIM:  This is Jim Kim.  And let me just say, first of all, I think we are in a very different position today than we were, let's say, a year-and-a-half ago.  A year-and-a-half ago, going into the United Nations General Assembly, there had been no kind of global statement on the importance of carbon pricing.  And under Rachel's leadership, there was a carbon-pricing statement that was signed by governments representing 52 percent of global GDP, and more than--well, many, many private sector companies--and since that time, the people who have signed that statement have grown even further. I think there are lots of very significant things that have happened already.  The announcement of President Xi here in the United States that they would go national with their carbon trading program--which we actually helped them work on.  We even provided China a grant to develop their carbon-trading scheme.  That is extremely significant.  And so, anyone doing business in China has to start thinking about low-carbon solutions. On the day that national trading scheme goes into place, Beijing will become the largest carbon market in the world.  And we really strongly believe that this is what's needed.  And we believe it so strongly that Christine Lagarde of the IMF and I have brought together a high-level panel on carbon pricing that will have its debut in Paris next week, and it includes Chancellor Angela Merkel of Germany, President François Hollande of France, President Peña Nieto of Mexico, Prime Minister Desalegn of Ethiopia and many other--including governors and others.  ff And it's very--it's a very, very important statement.  We don't know exactly how the different systems are going to look, but as more countries--and China, which will soon become the largest economy in the world, their commitment to a carbon trading scheme for the entire country, I think, is going to have a very positive and, we hope, domino effect. If everyone starts choosing the low-carbon path towards manufacturing because they have to think about the Chinese market, that will have a huge influence on the speed with which we get to the kind of rapidly growing, low-carbon future that we all want. MR. DONNELLY:  Thank you. This is John Donnelly again.  We will now end our call. Again, one reminder:  All comments today are embargoed until 3:00 p.m. Eastern Standard Time, and we will send a transcript up to you later in the day.  ","content_1000":" MR. DONNELLY:  Thank you very much.  And thank you, everyone, for joining the call. This call will be focusing on two issues:  One is in advance to COP21 in Paris; and the second one is the release of the Africa Business Plan, which is a look at climate, how Africa can deal with climate issues moving forward. All the comments in the call are embargoed until 3:00 p.m. Eastern Standard Time today, as is the report. So, I will turn this over to President Jim Yong Kim of the World Bank. And I also have here with me Rachel Kyte, who is Vice President and Special Envoy for Climate Change at the World Bank; And Makhtar Diop, who is Vice President for the Africa Region. Dr. Kim will read a statement and then we'll take your questions. Thank you. DR. KIM:  Thank you very much, everyone, for joining the call. Today, I will talk about two issues:  First, we'll look ahead to COP21 in Paris; and second, I'll comment on a report we're releasing today that gives Sub-Saharan ","displayconttype":"Speeches and Transcripts","originating_unit":"Climate Change, GCC","originating_unit_exact":"Climate Change, GCC","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","masterconttype":"Speeches and Transcripts","node_id":"26a983ba97432afc7a4fee1dd469af87b5b43d2f","wn_title":"Media Call: New Africa Climate Plan and COP21 with President Jim Yong Kim","wn_desc":" MR. DONNELLY:  Thank you very much.  And thank you, everyone, for joining the call. This call will be focusing on two issues:  One is in advance to COP21 in Paris; and the second one is the release of the Africa Business Plan, which is a look at climate, how Africa can deal with climate issues moving forward. All the comments in the call are embargoed until 3:00 p.m. Eastern Standard Time today, as is the report. So, I will turn this over to President Jim Yong Kim of the World Bank. And I also have here with me Rachel Kyte, who is Vice President and Special Envoy for Climate Change at the World Bank; And Makhtar Diop, who is Vice President for the Africa Region. Dr. Kim will read a statement and then we'll take your questions. Thank you. DR. KIM:  Thank you very much, everyone, for joining the call. Today, I will talk about two issues:  First, we'll look ahead to COP21 in Paris; and second, I'll comment on a report we're releasing today that gives Sub-Saharan Africa a business plan to prepare for climate change in the years ahead. As we go into this meeting, the world is full of heartache for the people of Paris, as well as for the people of Beirut, Ankara, Bamako, northeastern Nigeria, and many other communities that have suffered from senseless and random violence from extremists. In Paris, it will be a very sensitive time and security will be tight.  I want to commend President Hollande and his government for moving ahead with the Conference of the Parties Summit. The attack on Paris will change this summit.  Delegations will be smaller and we will not be marching through the streets as originally planned. But we will demonstrate our solidarity for the future of our planet.  My strong belief is that the leaders of the world will come together in Paris and endorse an ambitious agreement to tackle climate change and preserve our planet for all of us, but especially for our children and grandchildren. Just a few weeks after the horrific attacks, Paris will soon be known as the place where world leaders stood together on the right side of history. Ahead of the Paris talks, more than 160 countries have submitted their national plans, the INDCs, the Intended Nationally Determined Contributions, that show trillions of dollars of potential demand for climate investments. The World Bank Group is stepping up now to help countries meet their immediate challenges and also to help countries deliver on their national plans.  We pledged a one-third increase in direct funding for climate and overall could see an annual funding total of as much as $29 billion by 2020. Climate change is a grave threat to all of us, undermining stability and peace by intensifying stress over water access, food insecurity, and vulnerability to storms and heat waves.  In addition, this year, we're also witnessing the current El Nino phenomenon, which forecasters say could be the most severe in a half-century.  Already, coastal waters off Peru are 6 degrees Celsius warmer than normal, and forecasters say that will likely lead to more extreme weather from droughts, to flooding, to wildfires across the world. Now, I want to say a few words about the Africa Business Climate Plan, which was prepared in consultation with African governments and, in many cases, builds on existing plans and programs.  This business plan gives Africa a blueprint for climate action, starting on the day after a Paris agreement. The World Bank's plan is designed to help the region adapt to the changing climate through a number of concrete actions relating to land, water, agriculture, and cities in Africa.  It also calls for a major increase in renewable energy.  Our report found that, without development that helps countries prepare for climate change, 43 million people, additional, in Sub-Saharan Africa, mostly in Ethiopia, Nigeria, Tanzania, Angola, and Uganda could fall into extreme poverty by 2030.  This will be due to lower crop yields, higher food prices, and adverse health effects. The report also finds that the current volume of climate finance flowing to Africa is not enough.  Our Africa Business Plan aims to raise $16 billion a year in climate finance by 2020, of which $5.7 billion could come from IDA, our fund for the poorest countries.  The rest could come from a variety of sources, including private sector, bilateral and multilateral sources, and dedicated climate finance resources such as the Climate Investment Fund and the Green Climate Fund. I thank you for your attention and will now take your questions. MR. DONNELLY:  Okay, Operator, please ask reporters to line up questions. OPERATOR:  Our first question will come from the line of Mr. Andrew Mayeda of Bloomberg. Sir, your line now is open.  You may proceed. MR. MAYEDA:  Hi, Mr. Kim.  A question for you on the talks in Paris.  So, how optimistic are you that, you know, a meaningful global target can be reached and what do you think are the major obstacles to that goal? DR. KIM:  Well, you know, we now have 130-plus heads of state who are coming to Paris, and this is even after the terrorist attacks.  And so, I think that world leaders are coming with a sense of seriousness about reaching an agreement.  You know, if you just look at the current INDCs, it looks like, with full funding, we'll reach something like 2.7 degrees, and it's a little bit higher than we would have liked, but my own sense is that there's a very strong sense of destiny in that everyone who comes to Paris will want to see an agreement. Now, there are many issues that still have to be worked out.  There are many sort of open parentheses where we have to fill in specific language.  We believe that one of the obstacles in the past is less an obstacle than we had thought.  We believe that there is a credible path toward reaching the $100 billion a year by 2020 that was promised in Copenhagen. So, I don't think that the negotiations will be simply or easy, they never are.  Any global action is always very difficult, but I remain optimistic, because in the G20 meetings and in talking with many, many leaders, I think there is now a much deeper appreciation, understanding of the importance of sending a powerful, ambitious message out of Paris. MR. MAYEDA:  And just as a follow-up, how credible should the world see the--any U.S. promises at this--at these meetings to be given the fact that the administration, you know, kind of has a limited shelf life at this point.  Members of Congress have sent letters to the President stating that they will try and obstruct any agreement.  How credible do you think U.S. pledges in this regard should be seen as? DR. KIM:  You know, we believe, first of all, that both President Obama and Secretary John Kerry have been absolutely committed advocates of dramatic and sustained action on climate change. You know, we don't comment on individual domestic political discussions, but I'll tell you this:  I believe that the U.S. is negotiating in good faith.  I believe, as a citizen of the United States--I believe that the understanding of the importance of tackling climate change is very well understood by the majority of Americans.  And I think that, as events like El Nino, this year's El Nino, comes to pass, as ever, I think the understanding of just how severe the problem is that we're facing and just how important a concerted global action will be in the future, I think more and more Americans will understand that, and I believe that they will communicate that to their elected representatives evermore as time goes on. The science on this is absolutely indisputable, and anyone who is disputing the science around manmade climate change is not disputing the specific science, they're disputing science as a whole, because there are very few things in science--and I'm a medical doctor--for which there is 98 percent agreement.  And I think that it's not a scientific debate; it's a political debate. But moreover, I think that Americans are coming to realize that this is also a moral debate.  It's about the kind of world we leave our children.  And so, I believe that the U.S. will be on the right side of history going forward. OPERATOR:  Thank you.  Our next question comes from the line of Megan Rowling from Reuters. Ma'am, now your line is open. MS. ROWLING:  Hello.  Yeah, I'd like to ask, given that the Africa Climate Business Plan is very heavily focused on adaptation and clearly shows a desire to get more money flowing for adaptation in Africa, do you believe that there should be a commitment on increasing the amount of money going towards adaptation vis-à-vis mitigation in the Paris outcome?  And if so, how do you think that should be expressed? And just one other small question:  I think you mentioned $16 billion a year for the Africa Climate Business Plan, but my reading was 16 billion between 2016 and 2020.  I'm just wondering if you can confirm that figure.  Thanks. DR. KIM:  Let me clarify.  I misread the text.  It is $16 billion in the periods that you did mention.  Yes, that's correct. And then, I'm going to ask Rachel to comment on the mix of mitigation and adaptation funding. MS. KYTE:  So, there are a number of proposals in the negotiations for financial targets.  We don't comment on the negotiations, per se, but I think that we have two main points that we've been talking to, our shareholders and the countries in which we work about. One is that there needs to be a reasonably dramatic increase in the amount of investments going into resilience, between now and 2020.  Obviously, the Paris negotiations are for the period 2020 on.  And my colleague, Makhtar, will talk about that in a moment.  And then, secondly, there are things we're committed to as a multilateral development bank, together with all the other multilateral development banks, that would boost resilience and adaptation funding.  So, each of us, when we made our commitments to increase climate finance last month in the meetings in Lima indicated that, as we did so, we would increase the amount of financing going into adaptation. I think there's also one other thing which is that there is a great focus in Paris, and probably coming out of Paris, around the role of private financing and private sector co-financing into adaptation.  This has been under-emphasized up to now, but the way in which the private sector will be mobilized and private financing will be mobilized around adaptation will be very important.  So, for very large companies that have assets at risk, we're starting to see them with a capital expenditure, et cetera, understanding the risk from if they don't respond to adaptation needs, but we're seeing more and more companies starting to think that through.  Obviously, you've seen the announcements from the insurance industry, as well. But to Makhtar on the specifics of Africa. MR. DIOP:  Thank you very much. And on adaptation, indeed, it is something that is essential for Africa, and already things are happening.  So, let me just step back and look at Power Africa Initiative, for instance, for the U.S.  The initiative is trying to mobilize the private sector to finance the effort of energy access in Africa.  And as we are working with the U.S. companies, we are trying to bring them renewable energy and to have activities which allow them to invest heavily in renewable energy. For instance, in the side area we are working on a project in Banda (Banda Gas to Power Project for Mauritania, Senegal and Mali), which aims at transforming gas to power.  We are working on many hydro projects and have a huge potential on solar.  We have, today, a potential of more than 1,000 gigawatts of solar in Africa, 15 gigawatts of geothermal, and 45 of hydro. So, all these are areas in which the private sector is very interested.  So, the $5.7 billion that we will be putting in IDA will have leveraging investment in renewable energy and smart agriculture. DR. KIM:  You know, the point here, though, is that I think the Africans are coming into this meeting, and I think they're thinking about the very clear justice issues that are very much present around climate change.  And any African leader will tell you that they've had very little role in putting the carbon in the air that's currently in the air but that they suffer most from the impact of climate change: extreme weather events, the loss of arable land.  Some 40 percent of the land that's currently growing maize in Africa won't be able to do so by 2030.  Any time there is an extreme weather event, the amount of damage to countries, low-income countries in Africa, is much greater than to the high-income countries in Europe and elsewhere. But it goes even further than that, the greatest harm is to the poorest 20 percent of even low-income countries.  In other words, the poorest in poor countries are affected much more, many times more, than the more well-to-do in those countries from extreme weather events. And so, this is an effort to put adaptation on the table as one way of addressing directly the justice issues that we have to tackle going into Paris. Our hope is that African leaders and others from the lowest income countries will recognize that this is not just about mitigation.  This is not just about taking carbon out of the air to preserve a future for the wealthy countries, but this is also about ensuring that the World Bank Group and others are alive to and are addressing directly the justice issues about the impact of current levels of the temperature rise on so many in Sub-Saharan Africa. OPERATOR:  Thank you. The next question comes from the line of Ms. Lisa Friedman of ClimateWire.Ma'am, your line is open. MS. FRIEDMAN:  Hi.  Thanks very much for doing this call.  I have a question on coal development, and the World Bank, after a long struggle, was one of the first ever to impose restrictions and guidelines on coal, and we've seen a number of countries, and most recently the OECD, restrict coal, and we're starting to see a real backlash, the Environment Minister of India the other day in an interview called it unacceptable and to put restrictions on developing countries to grow.  And I'm wondering if one of you can talk about how that discussion is developing.  Is there really yet enough assistance out there help countries like India and Africa to develop with clean energy if avenues to public money for coal is being cut off more and more?   Do you see this going in the right direction and what kind of--what are the biggest challenges here? MS. KYTE:  Lisa, it's Rachel. MS. FRIEDMAN:  Hi, thank you. MS. KYTE:  Look, I think two main things. First of all, I think that there is a legitimate concern among countries that have very brown economies that the international community is going to be with them every step of the way as they transition to a greener energy mix and a greener future, and I think that's a legitimate concern. I mean, once we leave Paris and we leave all this hot air and rhetoric and we have a strong agreement, then we have to work hand-in-hand as an international community to make the energy mix cleaner, to move the economy onto a lower carbon trajectory, and that's going to require really hard work and difficult policy choices in many, many economies, from West Virginia and Kentucky through to Northeastern India, through to Indonesia and Australia and many others in between. So, I think that there's real seriousness around sitting down and working through how we help those countries that have been very dependent on coal become less dependent on coal.  But that's not a debate that's face-to-face in those countries, and you will see in Paris very large announcements coming from India and other places around their total commitment to becoming leaders in cleaner technologies, as well as working through the transition to be more and more efficient in the use of any fossil fuels that are in their energy mix. So, you know, I think that there's been some extraordinary developments in the coal industry over the past couple of years.  There have been some extraordinary developments in the investment community as they look at the long-term risks associated with intense exposure to carbon.  The most recently hinted at is the move by Alliance which I think is in the media this week.  So, we are seeing long-term investors taking a different view of how much carbon they want to have in their portfolio.  So, I think that we have got all kinds of things happening, but the most important thing is that, after Paris, there will have to be a very serious conversation amongst entities and organizations and countries around engineering this transition to low-carbon growth. And you know, we in the World Bank have been very, very clear for the last few years that we will be on the front end of helping countries manage that transition, and recognizing that some countries do have coal in their mix means that we will have to work with them carefully through that transition. So, yeah, it's not a coal/no coal debate; it's about how quickly and how smoothly can we have an orderly transition to the low-carbon economies, and we'll be there across all of our clients to have that conversation. DR. KIM:  One other thing, Lisa. You know, if you just look at some of the development--you know, when I took this job three-and-a-half years ago, there was great excitement about price of solar energy going down to 15 cents a kilowatt hour and today we're talking about 5 or 6 cents a kilowatt hour. And moreover, I think we just have to get much more serious about exploiting different kinds of renewable energy.  For example, in the advanced economies in OECD countries, more than 90 percent of all exploitable hydroelectric power is already being exploited; whereas, in Sub-Saharan Africa it's less than 10 percent.  We just have to find a path toward getting--you know, getting hydroelectric power going in Sub-Saharan Africa. Also, you know, there's some very exciting developments.  For example, the folks who put together the extraordinary geothermal system in Iceland are now working with--in Ethiopia in the Rift Valley and there is this strong sense that geothermal capacity will be there. And also, I think you have to look seriously at Prime Minister Modi's commitment to solar.  It's an enormous commitment to solar over time.  They also happen to have enormous need for energy at the moment. MR. DONNELLY:  This is John Donnelly.  Just two quick notes:  One is that we'll send a transcript of this call to all participants afterwards--so, sometime later today. And secondly, after you ask your question, just please put your phone on mute.  Thank you. OPERATOR:  Our next question comes from the line of Mr. Michael Igoe of Divest-Invest.  Sir, your line now is open. MR. IGOE:  Hi, thanks very much and thank you all for holding this call. Dr. Kim, you mentioned your optimism about a path towards reaching the $100 billion in financing for adaptation.  And you also mentioned that the money that the World Bank is pointing towards here builds on existing programs in many cases. So, I guess my question is, how does the World Bank define something as \"climate adaptation funding\"?  How is that different from just \"development funding\"?  Is there any risk that institutions, if not the World Bank then perhaps others might just sort of re-label funding that goes towards programs in, you know, rural development writ large and agriculture and things that are climate-related [audio distortion]? MS. KYTE:  This is Rachel Kyte.  So, we've worked very closely with other multilateral development banks, and with other bilateral financial institutions, including the bilaterals from Europe and some of the national development banks to work through exactly what we would count as adaptation, recognizing that there's real sensitivity around double counting and the use of funds. And so, we have worked out a fairly strict methodology that we use in the World Bank Group and principles on adaptation finance which are agreed across the multilateral development banks.  And we count the incremental amount on a project that would secure its--secure an adaptation impact. So, if we're investing in a road, we wouldn’t just count the whole of the investment in the road as an adaptation project, unless that was warranted.  We would count the incremental cost on the project of building it to perhaps a different specification or building it through a different route.  That would secure its adaptation impact.  So, we're very clear about that.  That meant training all of our staff and securing the understanding of all of our task team leaders.  This has been a substantial effort by the operational staff of the World Bank Group over the past couple of years.  And we all report those numbers in the same way.       But I just want to make one thing clear:  That's development finance.  So, if we're involving--if this is a project of IDA, then we can tell you what we've spent on adaptation from IDA.  Of course, we also channel climate funds and climate finance into both mitigation and adaptation activities.  So, for example, in the climate investment funds, when we manage projects under the PPCR, which is the adaptation fund, then we would count those monies as adaptation channeled through us, as well.  But we have fairly clear methodology that we've worked through and negotiated with others, and it's publicly available on our website. MR. IGOE:  Thank you.  That's very helpful. OPERATOR:  Thank you.  The next question comes from the line of Mr. David Biello, Scientific American. Sir, your line now is open. MR. BIELLO:  Thank you.  From kind of paging through the report on the business case for Africa, I'm a little bit unclear on what the overall plan is.  Is that idea that, similar to the rest of the world, some form of industrialization would take place enabled by this increased access to power?  And if so, do you expect emissions to grow over time in Sub-Saharan Africa?  Thanks. JAMAL SAGHIR:  Currently, the continent is-- MR. DONNELLY:  Introduce yourself. JAMAL SAGHIR:  I'm Jamal Saghir, the Regional Advisor for the Africa Region at the World Bank. Currently, the continent is emitting around 3 percent of CO2.  This is equivalent to what the airline business emits per year. As the economy growth will continue, there will be a huge need for power.  Right now, 500 million people don't have access to any sort of power.  This is around 20 percent of the population of Sub-Saharan Africa have access.  We expect, if you like, to achieve 100 percent.  This would be a completely different way of looking at the energy business.  And therefore, what we have looking here is to harness the potential of geothermal, solar, wind, and hydropower and gas.  That's different way of doing business for the power sector.  Agriculture will be hit.  Agriculture right now is about 40 percent GDP in average countries like Mali or Tanzania.  We have to look at it from different perspective.  If we have to look at seed that is more resilient, to add different varieties of seeds, and that's why research as well as practical solutions will have to be put on the ground, because agriculture is a huge provider of jobs in the continent.  That's from the country perspective. In addition, the early warning signals is essential.  When Mozambique is hit by a flood, the signals start in the media.  So, the early warning and the [unclear] system that you would like to put in place is really to give a chance to the people [unclear] and Malawi (unclear) to really to prepare and really put this kind of impact. Finally, landscape management will be an important aspect, and this is relating to the coastal erosion which is affecting the West Africa coast in particular and some cities will be affected, especially the coastal cities.  So, we will have to reverse the trend we do business so that we really fight the poverty issues. DR. KIM:  And let me just try to jump in here--this is Jim Kim. The point that we were trying to make--the bigger point that we were trying to make in this publication, is that we are 100 percent committed to rapid economic growth on the African continent.  But we also believe that we can uncouple in a very significant way economic growth from the burning of fossil fuels, but in order to do so, we're going to have to move very quickly.  I think Vice President Makhtar Diop gave you very good examples of how the investments we're making are helping to crowd in and increase the interest of private sector investment in more renewable energy sources. And so, the message here has to be, one, we are completely committed to providing African countries the energy they need to grow economically. Two, we are completely committed to making the investments in adaptation that will prevent them from the huge costs of the extreme weather events related to climate change, and that--and moreover, that all of these things will lead to an even brighter future for Africa.  We are not saying to Africa, because other countries have put carbon in the air, you have to wait your turn for development.  We want to accelerate the process of African development and this has everything to do with our two goals, which is to end extreme poverty and boost shared prosperity. If we don't have success in Sub-Saharan Africa, we will not have success in reaching our goals. OPERATOR:  Thank you.  Next question comes from the line of Mr. Ed. King, Climate Home. Sir, your line now is open. MR. KING:  Thank you very much.  Two questions, if I may. Does the World Bank have any long-term de-carbonization goals for investments?  Could you offer any kind of sense of the sort of internal debate of that going on? And I also just wanted to get your views on the links between climate change and conflict.  Prince Charles--I'm sure Rachel heard Prince Charles talk about that earlier this week, and particularly about the conflict in Syria, but does the World Bank have any views on why it's important to tackle climate change in the context of instability of certain regions of the world? MS. KYTE:  Ed, hi, it's Rachel.  I look forward to seeing you next week. On your first question on de-carbonization, the Bank Group will be taking a climate action plan to its Board in 2016 following Paris.  And I don't--at this point, there's a conversation going on inside the institution about how it will position itself and where it will prioritize its work and what this means, and I'm sure that conversation will be one that some of our shareholders will raise, but you'll have to wait until then to see more. MR. DIOP:  Regarding conflict, it's a very important point, actually, one of the limits that have slowed down African growth has been the repetition of conflict, and there is a great piece by Professor Ted Miguel from Berkeley, which shows really the strong correlation between the scarcity event and conflict.  Whenever there is scarcity of water, whenever people are fighting around scarce resources, when there is no electricity, when there is erosion of soil, people are competing for these scarce resources.  That is the main source of conflict in a lot of parts of Africa. So, reducing the frequency of these events, increasing the ability to have green agriculture, smart agriculture, the ability to be able to reduce these shocks will be having definitely an impact on conflict. And I think it's important that the global public good--because it is African--the world--this conflict that Africa has been facing, and this is exactly something that the COP21 will have to discuss, because beyond the well-being of the African populations we are talking about a global public good which is creating more peace and stability around the world. DR. KIM:  And this is Jim Kim.  I just want to say that we at the World Bank Group are committed to tackling climate change in every form, including looking carefully at our investment portfolio.  It's a process that we've begun over the last year, year-and-a-half.  We're going to continue to do it.  And you know, we will report to our Board very soon. Let me just say this:  You know, it's always difficult to point to one single cause of any given war or conflict.  It's difficult to do that.  On the other hand, we are quite certain, as Makhtar just said, that the impact of climate change, especially on Sub-Saharan Africa, will be to destabilize countries. And so, the most important thing we want to put on the table with this Africa report is that, as we said, we are committed to growth, we are committed to adaptation, but we also want to stress the point that there is a tremendous sense of urgency that we all should share.  These are not things that we can put off.  And just to give you a quick example, the early warning systems--and we're just beginning now to get them in place in Africa.  In India, where we started maybe just a little bit earlier, there is a coastal area of India that, in 1999, suffered tens of thousands of deaths from a cyclone.   And during, in 2013, with Cyclone Phailin, there were only 100 deaths, and it was because of the installation of an early warning system and people were able to move to high ground very quickly. So, these are very inexpensive investments that, of course, all the developed countries already have.  And with El Nino looming, probably the biggest impact will start in December, we feel a tremendous sense of urgency to move quickly in Sub-Saharan Africa and other low-income countries that have not yet benefitted. So, we're committed as an institution, including looking at our investments, but we feel like the urgency to move in the poorest countries has to be made clear and has to be made clear in Paris. OPERATOR:  Thank you. We will have another question coming from the line of David Biello, Scientific American. Sir, your line now is open. MR. BIELLO:  Sorry, I muted myself.  Thank you for taking the second question. I'm wondering what role carbon markets might play in in mobilizing finance going forward, in your view. MS. KYTE:  Hi.  So, you know, obviously we've been working closely with many countries and states and provinces and, in fact, cities now, as well, as they think through how they want to best put a price on carbon.  Many of them are choosing to develop market-based systems.  And what we are seeing from our analysis of all of the existing schemes that are in place is that once there is a price on carbon, especially through a market-based mechanism, then the behavior of the private sector and the public procurement does shift.  And so, we see efficiency increasing, we see R&D investment moving into greener growth and into greener and cleaner technologies and processes, and we do actually see emissions come down. And I think this is one of the reasons why now, as we go into Paris, we see more and more countries in their INDCs indicating that they will put a price on carbon and most of them are indicating that they'll do that either through taxes and fees or through market-based mechanisms.  And obviously, now, there is a lot of thought being given to how all these different prices emerging from different market-based mechanisms, auctions and trading systems and then taxes and fees, how different countries will be able to link together.  And so, this is some of the long-range work we've been doing with a number of other institutions and bodies around the world. So, there is a shift in financing when one has a price on carbon, and the clear long-term signal that it sends into the economy, it does affect private investment behavior, as well as public procurement. The way that we've thought about it and the way that we've advocated together with world leaders is that it is a necessary, if insufficient, step to be taking, if you're going to use macroeconomic and fiscal policy tools to really drive carbon out of your economy.  And for that reason, we see the wider and wider--well, wider and wider political indication that more and more leaders are going to introduce carbon pricing in the near future. DR. KIM:  This is Jim Kim.  And let me just say, first of all, I think we are in a very different position today than we were, let's say, a year-and-a-half ago.  A year-and-a-half ago, going into the United Nations General Assembly, there had been no kind of global statement on the importance of carbon pricing.  And under Rachel's leadership, there was a carbon-pricing statement that was signed by governments representing 52 percent of global GDP, and more than--well, many, many private sector companies--and since that time, the people who have signed that statement have grown even further. I think there are lots of very significant things that have happened already.  The announcement of President Xi here in the United States that they would go national with their carbon trading program--which we actually helped them work on.  We even provided China a grant to develop their carbon-trading scheme.  That is extremely significant.  And so, anyone doing business in China has to start thinking about low-carbon solutions. On the day that national trading scheme goes into place, Beijing will become the largest carbon market in the world.  And we really strongly believe that this is what's needed.  And we believe it so strongly that Christine Lagarde of the IMF and I have brought together a high-level panel on carbon pricing that will have its debut in Paris next week, and it includes Chancellor Angela Merkel of Germany, President François Hollande of France, President Peña Nieto of Mexico, Prime Minister Desalegn of Ethiopia and many other--including governors and others.  ff And it's very--it's a very, very important statement.  We don't know exactly how the different systems are going to look, but as more countries--and China, which will soon become the largest economy in the world, their commitment to a carbon trading scheme for the entire country, I think, is going to have a very positive and, we hope, domino effect. If everyone starts choosing the low-carbon path towards manufacturing because they have to think about the Chinese market, that will have a huge influence on the speed with which we get to the kind of rapidly growing, low-carbon future that we all want. MR. DONNELLY:  Thank you. This is John Donnelly again.  We will now end our call. Again, one reminder:  All comments today are embargoed until 3:00 p.m. Eastern Standard Time, and we will send a transcript up to you later in the day.  ","upi":"000487489","master_date":"2015-11-24T18:50:00Z","master_date_srt":"2015-11-24T18:50:00Z","master_recent_date_srt":"2015-11-24T18:50:00Z","master_recent_date":"2015-11-24T18:50:00Z","short_description":"Transcript\nEmbargoed Media Call – \nNew Africa Climate Plan and COP21 with World Bank Group President Jim Yong Kim\nWorld Bank Group President Jim Yong Kim","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","desc":" MR. DONNELLY:  Thank you very much.  And thank you, everyone, for joining the call. This call will be focusing on two issues:  One is in advance to COP21 in Paris; and the second one is the release of the Africa Business Plan, which is a look at climate, how Africa can deal with climate issues moving forward. All the comments in the call are embargoed until 3:00 p.m. Eastern Standard Time today, as is the report. So, I will turn this over to President Jim Yong Kim of the World Bank. And I also have here with me Rachel Kyte, who is Vice President and Special Envoy for Climate Change at the World Bank; And Makhtar Diop, who is Vice President for the Africa Region. Dr. Kim will read a statement and then we'll take your questions. Thank you. DR. KIM:  Thank you very much, everyone, for joining the call. Today, I will talk about two issues:  First, we'll look ahead to COP21 in Paris; and second, I'll comment on a report we're releasing today that gives Sub-Saharan Africa a business plan to prepare for climate change in the years ahead. As we go into this meeting, the world is full of heartache for the people of Paris, as well as for the people of Beirut, Ankara, Bamako, northeastern Nigeria, and many other communities that have suffered from senseless and random violence from extremists. In Paris, it will be a very sensitive time and security will be tight.  I want to commend President Hollande and his government for moving ahead with the Conference of the Parties Summit. The attack on Paris will change this summit.  Delegations will be smaller and we will not be marching through the streets as originally planned. But we will demonstrate our solidarity for the future of our planet.  My strong belief is that the leaders of the world will come together in Paris and endorse an ambitious agreement to tackle climate change and preserve our planet for all of us, but especially for our children and grandchildren. Just a few weeks after the horrific attacks, Paris will soon be known as the place where world leaders stood together on the right side of history. Ahead of the Paris talks, more than 160 countries have submitted their national plans, the INDCs, the Intended Nationally Determined Contributions, that show trillions of dollars of potential demand for climate investments. The World Bank Group is stepping up now to help countries meet their immediate challenges and also to help countries deliver on their national plans.  We pledged a one-third increase in direct funding for climate and overall could see an annual funding total of as much as $29 billion by 2020. Climate change is a grave threat to all of us, undermining stability and peace by intensifying stress over water access, food insecurity, and vulnerability to storms and heat waves.  In addition, this year, we're also witnessing the current El Nino phenomenon, which forecasters say could be the most severe in a half-century.  Already, coastal waters off Peru are 6 degrees Celsius warmer than normal, and forecasters say that will likely lead to more extreme weather from droughts, to flooding, to wildfires across the world. Now, I want to say a few words about the Africa Business Climate Plan, which was prepared in consultation with African governments and, in many cases, builds on existing plans and programs.  This business plan gives Africa a blueprint for climate action, starting on the day after a Paris agreement. The World Bank's plan is designed to help the region adapt to the changing climate through a number of concrete actions relating to land, water, agriculture, and cities in Africa.  It also calls for a major increase in renewable energy.  Our report found that, without development that helps countries prepare for climate change, 43 million people, additional, in Sub-Saharan Africa, mostly in Ethiopia, Nigeria, Tanzania, Angola, and Uganda could fall into extreme poverty by 2030.  This will be due to lower crop yields, higher food prices, and adverse health effects. The report also finds that the current volume of climate finance flowing to Africa is not enough.  Our Africa Business Plan aims to raise $16 billion a year in climate finance by 2020, of which $5.7 billion could come from IDA, our fund for the poorest countries.  The rest could come from a variety of sources, including private sector, bilateral and multilateral sources, and dedicated climate finance resources such as the Climate Investment Fund and the Green Climate Fund. I thank you for your attention and will now take your questions. MR. DONNELLY:  Okay, Operator, please ask reporters to line up questions. OPERATOR:  Our first question will come from the line of Mr. Andrew Mayeda of Bloomberg. Sir, your line now is open.  You may proceed. MR. MAYEDA:  Hi, Mr. Kim.  A question for you on the talks in Paris.  So, how optimistic are you that, you know, a meaningful global target can be reached and what do you think are the major obstacles to that goal? DR. KIM:  Well, you know, we now have 130-plus heads of state who are coming to Paris, and this is even after the terrorist attacks.  And so, I think that world leaders are coming with a sense of seriousness about reaching an agreement.  You know, if you just look at the current INDCs, it looks like, with full funding, we'll reach something like 2.7 degrees, and it's a little bit higher than we would have liked, but my own sense is that there's a very strong sense of destiny in that everyone who comes to Paris will want to see an agreement. Now, there are many issues that still have to be worked out.  There are many sort of open parentheses where we have to fill in specific language.  We believe that one of the obstacles in the past is less an obstacle than we had thought.  We believe that there is a credible path toward reaching the $100 billion a year by 2020 that was promised in Copenhagen. So, I don't think that the negotiations will be simply or easy, they never are.  Any global action is always very difficult, but I remain optimistic, because in the G20 meetings and in talking with many, many leaders, I think there is now a much deeper appreciation, understanding of the importance of sending a powerful, ambitious message out of Paris. MR. MAYEDA:  And just as a follow-up, how credible should the world see the--any U.S. promises at this--at these meetings to be given the fact that the administration, you know, kind of has a limited shelf life at this point.  Members of Congress have sent letters to the President stating that they will try and obstruct any agreement.  How credible do you think U.S. pledges in this regard should be seen as? DR. KIM:  You know, we believe, first of all, that both President Obama and Secretary John Kerry have been absolutely committed advocates of dramatic and sustained action on climate change. You know, we don't comment on individual domestic political discussions, but I'll tell you this:  I believe that the U.S. is negotiating in good faith.  I believe, as a citizen of the United States--I believe that the understanding of the importance of tackling climate change is very well understood by the majority of Americans.  And I think that, as events like El Nino, this year's El Nino, comes to pass, as ever, I think the understanding of just how severe the problem is that we're facing and just how important a concerted global action will be in the future, I think more and more Americans will understand that, and I believe that they will communicate that to their elected representatives evermore as time goes on. The science on this is absolutely indisputable, and anyone who is disputing the science around manmade climate change is not disputing the specific science, they're disputing science as a whole, because there are very few things in science--and I'm a medical doctor--for which there is 98 percent agreement.  And I think that it's not a scientific debate; it's a political debate. But moreover, I think that Americans are coming to realize that this is also a moral debate.  It's about the kind of world we leave our children.  And so, I believe that the U.S. will be on the right side of history going forward. OPERATOR:  Thank you.  Our next question comes from the line of Megan Rowling from Reuters. Ma'am, now your line is open. MS. ROWLING:  Hello.  Yeah, I'd like to ask, given that the Africa Climate Business Plan is very heavily focused on adaptation and clearly shows a desire to get more money flowing for adaptation in Africa, do you believe that there should be a commitment on increasing the amount of money going towards adaptation vis-à-vis mitigation in the Paris outcome?  And if so, how do you think that should be expressed? And just one other small question:  I think you mentioned $16 billion a year for the Africa Climate Business Plan, but my reading was 16 billion between 2016 and 2020.  I'm just wondering if you can confirm that figure.  Thanks. DR. KIM:  Let me clarify.  I misread the text.  It is $16 billion in the periods that you did mention.  Yes, that's correct. And then, I'm going to ask Rachel to comment on the mix of mitigation and adaptation funding. MS. KYTE:  So, there are a number of proposals in the negotiations for financial targets.  We don't comment on the negotiations, per se, but I think that we have two main points that we've been talking to, our shareholders and the countries in which we work about. One is that there needs to be a reasonably dramatic increase in the amount of investments going into resilience, between now and 2020.  Obviously, the Paris negotiations are for the period 2020 on.  And my colleague, Makhtar, will talk about that in a moment.  And then, secondly, there are things we're committed to as a multilateral development bank, together with all the other multilateral development banks, that would boost resilience and adaptation funding.  So, each of us, when we made our commitments to increase climate finance last month in the meetings in Lima indicated that, as we did so, we would increase the amount of financing going into adaptation. I think there's also one other thing which is that there is a great focus in Paris, and probably coming out of Paris, around the role of private financing and private sector co-financing into adaptation.  This has been under-emphasized up to now, but the way in which the private sector will be mobilized and private financing will be mobilized around adaptation will be very important.  So, for very large companies that have assets at risk, we're starting to see them with a capital expenditure, et cetera, understanding the risk from if they don't respond to adaptation needs, but we're seeing more and more companies starting to think that through.  Obviously, you've seen the announcements from the insurance industry, as well. But to Makhtar on the specifics of Africa. MR. DIOP:  Thank you very much. And on adaptation, indeed, it is something that is essential for Africa, and already things are happening.  So, let me just step back and look at Power Africa Initiative, for instance, for the U.S.  The initiative is trying to mobilize the private sector to finance the effort of energy access in Africa.  And as we are working with the U.S. companies, we are trying to bring them renewable energy and to have activities which allow them to invest heavily in renewable energy. For instance, in the side area we are working on a project in Banda (Banda Gas to Power Project for Mauritania, Senegal and Mali), which aims at transforming gas to power.  We are working on many hydro projects and have a huge potential on solar.  We have, today, a potential of more than 1,000 gigawatts of solar in Africa, 15 gigawatts of geothermal, and 45 of hydro. So, all these are areas in which the private sector is very interested.  So, the $5.7 billion that we will be putting in IDA will have leveraging investment in renewable energy and smart agriculture. DR. KIM:  You know, the point here, though, is that I think the Africans are coming into this meeting, and I think they're thinking about the very clear justice issues that are very much present around climate change.  And any African leader will tell you that they've had very little role in putting the carbon in the air that's currently in the air but that they suffer most from the impact of climate change: extreme weather events, the loss of arable land.  Some 40 percent of the land that's currently growing maize in Africa won't be able to do so by 2030.  Any time there is an extreme weather event, the amount of damage to countries, low-income countries in Africa, is much greater than to the high-income countries in Europe and elsewhere. But it goes even further than that, the greatest harm is to the poorest 20 percent of even low-income countries.  In other words, the poorest in poor countries are affected much more, many times more, than the more well-to-do in those countries from extreme weather events. And so, this is an effort to put adaptation on the table as one way of addressing directly the justice issues that we have to tackle going into Paris. Our hope is that African leaders and others from the lowest income countries will recognize that this is not just about mitigation.  This is not just about taking carbon out of the air to preserve a future for the wealthy countries, but this is also about ensuring that the World Bank Group and others are alive to and are addressing directly the justice issues about the impact of current levels of the temperature rise on so many in Sub-Saharan Africa. OPERATOR:  Thank you. The next question comes from the line of Ms. Lisa Friedman of ClimateWire.Ma'am, your line is open. MS. FRIEDMAN:  Hi.  Thanks very much for doing this call.  I have a question on coal development, and the World Bank, after a long struggle, was one of the first ever to impose restrictions and guidelines on coal, and we've seen a number of countries, and most recently the OECD, restrict coal, and we're starting to see a real backlash, the Environment Minister of India the other day in an interview called it unacceptable and to put restrictions on developing countries to grow.  And I'm wondering if one of you can talk about how that discussion is developing.  Is there really yet enough assistance out there help countries like India and Africa to develop with clean energy if avenues to public money for coal is being cut off more and more?   Do you see this going in the right direction and what kind of--what are the biggest challenges here? MS. KYTE:  Lisa, it's Rachel. MS. FRIEDMAN:  Hi, thank you. MS. KYTE:  Look, I think two main things. First of all, I think that there is a legitimate concern among countries that have very brown economies that the international community is going to be with them every step of the way as they transition to a greener energy mix and a greener future, and I think that's a legitimate concern. I mean, once we leave Paris and we leave all this hot air and rhetoric and we have a strong agreement, then we have to work hand-in-hand as an international community to make the energy mix cleaner, to move the economy onto a lower carbon trajectory, and that's going to require really hard work and difficult policy choices in many, many economies, from West Virginia and Kentucky through to Northeastern India, through to Indonesia and Australia and many others in between. So, I think that there's real seriousness around sitting down and working through how we help those countries that have been very dependent on coal become less dependent on coal.  But that's not a debate that's face-to-face in those countries, and you will see in Paris very large announcements coming from India and other places around their total commitment to becoming leaders in cleaner technologies, as well as working through the transition to be more and more efficient in the use of any fossil fuels that are in their energy mix. So, you know, I think that there's been some extraordinary developments in the coal industry over the past couple of years.  There have been some extraordinary developments in the investment community as they look at the long-term risks associated with intense exposure to carbon.  The most recently hinted at is the move by Alliance which I think is in the media this week.  So, we are seeing long-term investors taking a different view of how much carbon they want to have in their portfolio.  So, I think that we have got all kinds of things happening, but the most important thing is that, after Paris, there will have to be a very serious conversation amongst entities and organizations and countries around engineering this transition to low-carbon growth. And you know, we in the World Bank have been very, very clear for the last few years that we will be on the front end of helping countries manage that transition, and recognizing that some countries do have coal in their mix means that we will have to work with them carefully through that transition. So, yeah, it's not a coal/no coal debate; it's about how quickly and how smoothly can we have an orderly transition to the low-carbon economies, and we'll be there across all of our clients to have that conversation. DR. KIM:  One other thing, Lisa. You know, if you just look at some of the development--you know, when I took this job three-and-a-half years ago, there was great excitement about price of solar energy going down to 15 cents a kilowatt hour and today we're talking about 5 or 6 cents a kilowatt hour. And moreover, I think we just have to get much more serious about exploiting different kinds of renewable energy.  For example, in the advanced economies in OECD countries, more than 90 percent of all exploitable hydroelectric power is already being exploited; whereas, in Sub-Saharan Africa it's less than 10 percent.  We just have to find a path toward getting--you know, getting hydroelectric power going in Sub-Saharan Africa. Also, you know, there's some very exciting developments.  For example, the folks who put together the extraordinary geothermal system in Iceland are now working with--in Ethiopia in the Rift Valley and there is this strong sense that geothermal capacity will be there. And also, I think you have to look seriously at Prime Minister Modi's commitment to solar.  It's an enormous commitment to solar over time.  They also happen to have enormous need for energy at the moment. MR. DONNELLY:  This is John Donnelly.  Just two quick notes:  One is that we'll send a transcript of this call to all participants afterwards--so, sometime later today. And secondly, after you ask your question, just please put your phone on mute.  Thank you. OPERATOR:  Our next question comes from the line of Mr. Michael Igoe of Divest-Invest.  Sir, your line now is open. MR. IGOE:  Hi, thanks very much and thank you all for holding this call. Dr. Kim, you mentioned your optimism about a path towards reaching the $100 billion in financing for adaptation.  And you also mentioned that the money that the World Bank is pointing towards here builds on existing programs in many cases. So, I guess my question is, how does the World Bank define something as \"climate adaptation funding\"?  How is that different from just \"development funding\"?  Is there any risk that institutions, if not the World Bank then perhaps others might just sort of re-label funding that goes towards programs in, you know, rural development writ large and agriculture and things that are climate-related [audio distortion]? MS. KYTE:  This is Rachel Kyte.  So, we've worked very closely with other multilateral development banks, and with other bilateral financial institutions, including the bilaterals from Europe and some of the national development banks to work through exactly what we would count as adaptation, recognizing that there's real sensitivity around double counting and the use of funds. And so, we have worked out a fairly strict methodology that we use in the World Bank Group and principles on adaptation finance which are agreed across the multilateral development banks.  And we count the incremental amount on a project that would secure its--secure an adaptation impact. So, if we're investing in a road, we wouldn’t just count the whole of the investment in the road as an adaptation project, unless that was warranted.  We would count the incremental cost on the project of building it to perhaps a different specification or building it through a different route.  That would secure its adaptation impact.  So, we're very clear about that.  That meant training all of our staff and securing the understanding of all of our task team leaders.  This has been a substantial effort by the operational staff of the World Bank Group over the past couple of years.  And we all report those numbers in the same way.       But I just want to make one thing clear:  That's development finance.  So, if we're involving--if this is a project of IDA, then we can tell you what we've spent on adaptation from IDA.  Of course, we also channel climate funds and climate finance into both mitigation and adaptation activities.  So, for example, in the climate investment funds, when we manage projects under the PPCR, which is the adaptation fund, then we would count those monies as adaptation channeled through us, as well.  But we have fairly clear methodology that we've worked through and negotiated with others, and it's publicly available on our website. MR. IGOE:  Thank you.  That's very helpful. OPERATOR:  Thank you.  The next question comes from the line of Mr. David Biello, Scientific American. Sir, your line now is open. MR. BIELLO:  Thank you.  From kind of paging through the report on the business case for Africa, I'm a little bit unclear on what the overall plan is.  Is that idea that, similar to the rest of the world, some form of industrialization would take place enabled by this increased access to power?  And if so, do you expect emissions to grow over time in Sub-Saharan Africa?  Thanks. JAMAL SAGHIR:  Currently, the continent is-- MR. DONNELLY:  Introduce yourself. JAMAL SAGHIR:  I'm Jamal Saghir, the Regional Advisor for the Africa Region at the World Bank. Currently, the continent is emitting around 3 percent of CO2.  This is equivalent to what the airline business emits per year. As the economy growth will continue, there will be a huge need for power.  Right now, 500 million people don't have access to any sort of power.  This is around 20 percent of the population of Sub-Saharan Africa have access.  We expect, if you like, to achieve 100 percent.  This would be a completely different way of looking at the energy business.  And therefore, what we have looking here is to harness the potential of geothermal, solar, wind, and hydropower and gas.  That's different way of doing business for the power sector.  Agriculture will be hit.  Agriculture right now is about 40 percent GDP in average countries like Mali or Tanzania.  We have to look at it from different perspective.  If we have to look at seed that is more resilient, to add different varieties of seeds, and that's why research as well as practical solutions will have to be put on the ground, because agriculture is a huge provider of jobs in the continent.  That's from the country perspective. In addition, the early warning signals is essential.  When Mozambique is hit by a flood, the signals start in the media.  So, the early warning and the [unclear] system that you would like to put in place is really to give a chance to the people [unclear] and Malawi (unclear) to really to prepare and really put this kind of impact. Finally, landscape management will be an important aspect, and this is relating to the coastal erosion which is affecting the West Africa coast in particular and some cities will be affected, especially the coastal cities.  So, we will have to reverse the trend we do business so that we really fight the poverty issues. DR. KIM:  And let me just try to jump in here--this is Jim Kim. The point that we were trying to make--the bigger point that we were trying to make in this publication, is that we are 100 percent committed to rapid economic growth on the African continent.  But we also believe that we can uncouple in a very significant way economic growth from the burning of fossil fuels, but in order to do so, we're going to have to move very quickly.  I think Vice President Makhtar Diop gave you very good examples of how the investments we're making are helping to crowd in and increase the interest of private sector investment in more renewable energy sources. And so, the message here has to be, one, we are completely committed to providing African countries the energy they need to grow economically. Two, we are completely committed to making the investments in adaptation that will prevent them from the huge costs of the extreme weather events related to climate change, and that--and moreover, that all of these things will lead to an even brighter future for Africa.  We are not saying to Africa, because other countries have put carbon in the air, you have to wait your turn for development.  We want to accelerate the process of African development and this has everything to do with our two goals, which is to end extreme poverty and boost shared prosperity. If we don't have success in Sub-Saharan Africa, we will not have success in reaching our goals. OPERATOR:  Thank you.  Next question comes from the line of Mr. Ed. King, Climate Home. Sir, your line now is open. MR. KING:  Thank you very much.  Two questions, if I may. Does the World Bank have any long-term de-carbonization goals for investments?  Could you offer any kind of sense of the sort of internal debate of that going on? And I also just wanted to get your views on the links between climate change and conflict.  Prince Charles--I'm sure Rachel heard Prince Charles talk about that earlier this week, and particularly about the conflict in Syria, but does the World Bank have any views on why it's important to tackle climate change in the context of instability of certain regions of the world? MS. KYTE:  Ed, hi, it's Rachel.  I look forward to seeing you next week. On your first question on de-carbonization, the Bank Group will be taking a climate action plan to its Board in 2016 following Paris.  And I don't--at this point, there's a conversation going on inside the institution about how it will position itself and where it will prioritize its work and what this means, and I'm sure that conversation will be one that some of our shareholders will raise, but you'll have to wait until then to see more. MR. DIOP:  Regarding conflict, it's a very important point, actually, one of the limits that have slowed down African growth has been the repetition of conflict, and there is a great piece by Professor Ted Miguel from Berkeley, which shows really the strong correlation between the scarcity event and conflict.  Whenever there is scarcity of water, whenever people are fighting around scarce resources, when there is no electricity, when there is erosion of soil, people are competing for these scarce resources.  That is the main source of conflict in a lot of parts of Africa. So, reducing the frequency of these events, increasing the ability to have green agriculture, smart agriculture, the ability to be able to reduce these shocks will be having definitely an impact on conflict. And I think it's important that the global public good--because it is African--the world--this conflict that Africa has been facing, and this is exactly something that the COP21 will have to discuss, because beyond the well-being of the African populations we are talking about a global public good which is creating more peace and stability around the world. DR. KIM:  And this is Jim Kim.  I just want to say that we at the World Bank Group are committed to tackling climate change in every form, including looking carefully at our investment portfolio.  It's a process that we've begun over the last year, year-and-a-half.  We're going to continue to do it.  And you know, we will report to our Board very soon. Let me just say this:  You know, it's always difficult to point to one single cause of any given war or conflict.  It's difficult to do that.  On the other hand, we are quite certain, as Makhtar just said, that the impact of climate change, especially on Sub-Saharan Africa, will be to destabilize countries. And so, the most important thing we want to put on the table with this Africa report is that, as we said, we are committed to growth, we are committed to adaptation, but we also want to stress the point that there is a tremendous sense of urgency that we all should share.  These are not things that we can put off.  And just to give you a quick example, the early warning systems--and we're just beginning now to get them in place in Africa.  In India, where we started maybe just a little bit earlier, there is a coastal area of India that, in 1999, suffered tens of thousands of deaths from a cyclone.   And during, in 2013, with Cyclone Phailin, there were only 100 deaths, and it was because of the installation of an early warning system and people were able to move to high ground very quickly. So, these are very inexpensive investments that, of course, all the developed countries already have.  And with El Nino looming, probably the biggest impact will start in December, we feel a tremendous sense of urgency to move quickly in Sub-Saharan Africa and other low-income countries that have not yet benefitted. So, we're committed as an institution, including looking at our investments, but we feel like the urgency to move in the poorest countries has to be made clear and has to be made clear in Paris. OPERATOR:  Thank you. We will have another question coming from the line of David Biello, Scientific American. Sir, your line now is open. MR. BIELLO:  Sorry, I muted myself.  Thank you for taking the second question. I'm wondering what role carbon markets might play in in mobilizing finance going forward, in your view. MS. KYTE:  Hi.  So, you know, obviously we've been working closely with many countries and states and provinces and, in fact, cities now, as well, as they think through how they want to best put a price on carbon.  Many of them are choosing to develop market-based systems.  And what we are seeing from our analysis of all of the existing schemes that are in place is that once there is a price on carbon, especially through a market-based mechanism, then the behavior of the private sector and the public procurement does shift.  And so, we see efficiency increasing, we see R&D investment moving into greener growth and into greener and cleaner technologies and processes, and we do actually see emissions come down. And I think this is one of the reasons why now, as we go into Paris, we see more and more countries in their INDCs indicating that they will put a price on carbon and most of them are indicating that they'll do that either through taxes and fees or through market-based mechanisms.  And obviously, now, there is a lot of thought being given to how all these different prices emerging from different market-based mechanisms, auctions and trading systems and then taxes and fees, how different countries will be able to link together.  And so, this is some of the long-range work we've been doing with a number of other institutions and bodies around the world. So, there is a shift in financing when one has a price on carbon, and the clear long-term signal that it sends into the economy, it does affect private investment behavior, as well as public procurement. The way that we've thought about it and the way that we've advocated together with world leaders is that it is a necessary, if insufficient, step to be taking, if you're going to use macroeconomic and fiscal policy tools to really drive carbon out of your economy.  And for that reason, we see the wider and wider--well, wider and wider political indication that more and more leaders are going to introduce carbon pricing in the near future. DR. KIM:  This is Jim Kim.  And let me just say, first of all, I think we are in a very different position today than we were, let's say, a year-and-a-half ago.  A year-and-a-half ago, going into the United Nations General Assembly, there had been no kind of global statement on the importance of carbon pricing.  And under Rachel's leadership, there was a carbon-pricing statement that was signed by governments representing 52 percent of global GDP, and more than--well, many, many private sector companies--and since that time, the people who have signed that statement have grown even further. I think there are lots of very significant things that have happened already.  The announcement of President Xi here in the United States that they would go national with their carbon trading program--which we actually helped them work on.  We even provided China a grant to develop their carbon-trading scheme.  That is extremely significant.  And so, anyone doing business in China has to start thinking about low-carbon solutions. On the day that national trading scheme goes into place, Beijing will become the largest carbon market in the world.  And we really strongly believe that this is what's needed.  And we believe it so strongly that Christine Lagarde of the IMF and I have brought together a high-level panel on carbon pricing that will have its debut in Paris next week, and it includes Chancellor Angela Merkel of Germany, President François Hollande of France, President Peña Nieto of Mexico, Prime Minister Desalegn of Ethiopia and many other--including governors and others.  ff And it's very--it's a very, very important statement.  We don't know exactly how the different systems are going to look, but as more countries--and China, which will soon become the largest economy in the world, their commitment to a carbon trading scheme for the entire country, I think, is going to have a very positive and, we hope, domino effect. If everyone starts choosing the low-carbon path towards manufacturing because they have to think about the Chinese market, that will have a huge influence on the speed with which we get to the kind of rapidly growing, low-carbon future that we all want. MR. DONNELLY:  Thank you. This is John Donnelly again.  We will now end our call. Again, one reminder:  All comments today are embargoed until 3:00 p.m. Eastern Standard Time, and we will send a transcript up to you later in the day.  ","date":"2015-11-24T18:50:00Z","contenttype":"Speeches and Transcripts"},"_9a65501b67580edb6b9f177da33a1c7e684b0fca":{"id":"9a65501b67580edb6b9f177da33a1c7e684b0fca","title":"IDA17 Mid-Term Review: Opening Session","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2015/11/18/ida17-mid-term-review-opening-session","descr":"IDA17 Mid-Term Review: Opening Session, Makhtar Diop, Vice President, Africa Region, Wednesday, November 18th at 9.30AM","keywd":"regions:Africa,organization:International Development Association (IDA)","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","unit":"International Development Association (IDA)","cqpath":"/content/wb-home/en/news/speech/2015/11/18/ida17-mid-term-review-opening-session","regionname":"Africa","wcmsource":"cq5","content":"  Thank you Madam Chair. H.E. Macky Sall, President, Republic of Senegal; H.E. Lionel Zinsou, Prime Minister of Benin; Honorable Ministers; IDA Deputies; Distinguished Guests; Ladies and Gentlemen. I would like to join Sri Mulyani Indrawati in thanking the Government of Senegal for hosting us this week, and in welcoming you to Dakar for this Mid-Term Review of IDA17. Allow me, too, to offer my most heartfelt condolences to the people of France, and the people of Lebanon, following the horrific attacks that took place in Paris and in Beirut last week. Our work here this week, to do our utmost for the poorest, is all the more urgent in the face of fragility, conflict, and violence across the world.   When we last met for the IDA Mid Term Review in Abidjan, African was one of the fastest-growing regions, underpinned by sound macroeconomic management and rising prices for our primary commodities, with a signficantly improved business climate that attracted a wide range of foreign investments.  This period of sustained economic growth, which averaged five percent per year and was dubbed “Africa Rising”, also led to reduced levels of poverty in the continent.    Fast-forward to the present day, and economic conditions are far more uncertain.  Africa is facing significant headwinds:   we have reached the end of the commodity super-cycle; the downturn in a number of emerging markets is impacting trade and investment; and the likely rise in global interest rates will further impact growth.  Yet the past decade’s record of growth must be sustained, and even accelerated.  The Bank’s commitment to such sustained growth is articulated in the twin goals of eliminating extreme poverty and boosting shared prosperity. And we are redoubling our efforts to help African countries achieve growth that is stronger, more resilient, more inclusive, and more sustainable.   A number of  issues are occupying our minds these days – sadly, the risk of conflict and violence has leapt to the top of that list, along with the continued influx of refugees from Africa and the Middle East;  the challenge of delivering on the newly agreed Sustainable Development Goals; and the hopes for reaching a bold and impactful agreement in Paris next month on climate change.    Solving each of these challenges requires that we forge partnerships, formulate ideas and commit to take action.  This  focus on partnerships, ideas and action represents the story of IDA17 – it is what we do, every day, in 80 countries around the world with our clients and partners.  The Mid-Term Review of IDA17 is a good opportunity to look back – and look ahead --  at how we can mobilize ideas, resources and a shared commitment to operate in an increasingly complex world.   Some important innovations were introduced under IDA17.  Here, at the mid-point in the cycle, we should ask ourselves which of these are ready to be scaled-up, and what sort of next-generation innovations IDA can support going forward. In this context, I would like to share three points. First, IDA responds and delivers.  There continues to be strong demand for IDA financing from our clients across all regions.   In FY15, the first year of IDA17, we delivered $19 billion in new commitments – a record for the first year of any IDA replenishment period.  That same year,  IDA disbursed nearly $13 billion through its various  instruments.   We have a strong pipeline of projects for the remainder of IDA17, with demand for IDA in many cases far exceeding the resources available.  Let me add that IDA stepped up to respond to shocks and emergencies.  No one could have anticipated the tragic outbreak of Ebola at the start of IDA17.  IDA responded to Ebola, in strong measure, through $1.2 billion in financing and Technical Assistance; as well as to other shocks such as the Nepal earthquake.  As a result of these two emergencies, the IDA17 Crisis Response Window  is now completely exhausted, thereby depleting our capacity to respond to the next wave of shocks and crises, including the impact of climate change.    Beyond just replenishing these funds, we need to look more critically at the nature of shocks and fragility which have prevented unleashing even higher, shared growth in Africa.  These shocks include natural disasters, as intensified by climate change; and fragility and conflict.  The increased frequency and intensity of weather-related events – floods, droughts, cyclones – indicates these are no longer one-off disasters to which we must respond.  Rather, they have become the norm and require a long-term plan for climate adaptation.  For this very reason, we will be launching an Africa Climate Business Plan at the CoP21 in Paris next month. Similarly, as we respond to crises, it is essential to examine the root causes of fragility – in Africa, it is often a result of geographic imbalances.  This phenomenon of “spatial inequality”, whereby we see “two countries within a country”, is evident is several African countries.  Better human development indicators in one region of a particular country correspond to higher levels of public investment in education and health in those same regions.  This imbalance perpetuates inequality, lack of opportunity, and eventually spurs conflict within countries. Beyond emergency responses, IDA17 has provided critical support to infrastructure and human development.  IDA17 financing is expected to provide, among other things, electricity access to an estimated 15 to 20 million people, vaccines for 200 million children, and basic health services for 65 million people.   Our work to date has also yielded significant improvements in maternal and child health indices, and rates of primary school completion, to name just two examples. Much has been achieved so far, but there is a large unfinished agenda which lies ahead. Notably, African countries must surmount the challenge of financing their massive infrastructure needs.  Rather than looking solely at energy and other projects in individual countries, we are intensifying our approach to Regional Integration, so as to create synergies and unleash the growth potential in sub-regional clusters of economies. Here, too, demand for IDA resources far exceeds supply, as the IDA Regional Window is already over-subscribed.         Which brings me to the second point about the rapidly changing landscape of development financing.   In IDA countries, the levels of investment needed to meet development objectives far exceed the domestic savings and existing development financing.   That is why several IDA countries, including our hosts here in Senegal, have gone to the global capital markets.  How can IDA respond to the needs of this group of countries for non-concessional borrowing?  What are the parameters within which such lending can help deliver real development results while maintaining both macroeconomic stability and debt sustainability?  We need the IDA of the future to  build on the successes achieved thus far, and be bold and innovative.  A proposal will be presented to you later in the week, which would better enable us to respond to the growing demand for the resources needed to invest in growth.  We need to help IDA borrowers unlock financing for critical investments in infrastructure and human development.  These funds will come from three primary sources:  1) domestic resource mobilization; 2) crowding in the private sector; and 3) IDA and other donors.  IDA borrowers need to generate resources for public investments – and the capacity to do so varies widely among IDA clients.  The IMF has produced an analysis of so-called “compliance gaps” in tax collection, to help countries build effective tax administration systems.  This support to tax authorities has the double-benefit of enhancing revenues and building trusted public institutions.     Crowding in the private sector is only possible when there is confidence in these institutions and transparent revenue collection.  And yet it takes time to build the confidence of the private sector to invest in IDA countries.  IDA is essential in supporting improvements in tax collection, and helping to strengthen and consolidate the overall governance that will attract private investment in these growth sectors.  Allow me to share a recent example of innovation in leveraging IDA resources.   The recently approved Sankofa Gas Project – a $500-million IDA payment guarantee, combined with a $200-million IBRD enclave loan guarantee -- is expected to mobilize $7.9 billion in new private investment in offshore natural gas in Ghana. This project will bring significant benefits to Ghana by fueling up to 1,000 megawatts of clean power generation, replacing polluting and expensive oil-burning electricity, and allowing Ghana to reduce its oil imports by up to 12 million barrels per year. More significantly, it is currently the largest private-sector investment being undertaken in Sub-Saharan Africa. We need the IDA of the future to build upon innovations such as Sankofa and to help meet the financing needs of the range of our client countries, including those with projects which can be financed through non-concessional lending.  While we have a number of faster-growing countries that are accessing global capital markets, IDA continues to play a critical role in poor and fragile countries which have huge development needs but no such access to the markets, not least for those 34 countries which receive IDA resources wholly or in part as grants. Examples include Central African Republic, Burundi, Liberia, and South Sudan. Aid also has a role to play in helping countries to build viable institutions and thereby exit out of fragility. And this is why IDA matters.  Resource mobilization in many of these countries is low and reliance on concessional finance is high. Aid supports critical spending in health, education, and social safety net programs.  In FY15, IDA doubled its lending to Fragile & Conflict-Affected States (the so-called FCS) compared to FY14. Support to these countries is critical, not just as individual borrowers but because their fragility can have significant externalities and spillover effects on neighboring countries, thereby jeopardizing the growth agenda for Africa as a whole. Our focus on FCS must be more than an aspirational target: addressing the drivers of fragility, and supporting inclusive growth will be critical to help prevent countries from slipping back into conflict and violence. This brings us to the third point:  IDA delivers in times and places of crisis.  The  ongoing flow of migrants from Africa and the Middle East highlights the critical  nexus between development, security and politics.  We have made important progress in this regard during IDA17.  In Africa, we have worked closely with the United Nations and other partners in three major regional initiatives – in the Great Lakes, the Sahel, and the Horn of Africa.  Each of these efforts was launched during joint visits by President Jim Kim, UN Secretary-General Ban Ki-moon, and heads of other partner agencies.  At the core of these initiatives is a simple yet profound principle:  where there is political willingness  to address security and development challenges, IDA’s technical skills, financing and convening power can be mobilized with other partners to reduce risks and manage economic recovery.  IDA serves as a platform to further step up our work on this agenda, demonstrating leadership and the ability to innovate and contribute. In August, the international community met  in Addis Ababa and committed to the ‘From Billions to Trillions Agenda’.  What will be IDA’s contribution to this agenda?  Clearly, concessional financing should remain at the core of IDA as the poorest of our member countries  need continued access to grant and concesssional resources. In the current environment of global economic slow-down and fiscal pressures on our donor governments, how will we continue to finance these concessional resources?  The session later this week will address the outcomes of the IDA17 Working Group on Long-Term Vision and Financial Sustainability.   More broadly, the ability to deliver on the SDGs requires that IDA borrowers improved their domestic revenue mobilization, with the capacity challenges I described earlier.  At the other end of the spectrum, countries that are accessing increased volumes of non-concessional borrowing require greater capacity in debt management and the ability to appraise projects for their technical and financial feasibility.  IDA is already working in these areas and stands ready to provide the needed support to those countries seeking to make the quantum leap to non-concessional borrowing.    With these three points, we see IDA in a period of transition. As we take stock of progress towards meeting the goals of IDA17, these new challenges in the global environment will inform the pillars and instruments of IDA18.  Our efforts to strengthen domestic resource mobilization will not be a “quick fix”. Rather, IDA18 – and beyond -- must include a sustained commitment to improve revenue administration;  enhance the governance of state-owned enterprises, most urgently that of state-owned electric utilities; and support compliance with simplified tax regimes. Operations such as Sankofa, now seen as an innovative approach to crowd in private funding,  must but be replicated many times over, so as to spur increased private investment in key productive sectors. As we consider this long-term vision for IDA, let us take note of recent innovations, opportunities to scale-up prior programs, and be open to further innovation to devise customized financial solutions to respond to the next set of development challenges for our increasingly diverse client base. Thank you again for the opportunity to offer these opening remarks.  I look forward to engaging  with you over the coming days on how to deliver on the remaining agenda for IDA17, and to look ahead at how we will work together to build a strong and sustainable IDA for the future.","content_1000":"  Thank you Madam Chair. H.E. Macky Sall, President, Republic of Senegal; H.E. Lionel Zinsou, Prime Minister of Benin; Honorable Ministers; IDA Deputies; Distinguished Guests; Ladies and Gentlemen. I would like to join Sri Mulyani Indrawati in thanking the Government of Senegal for hosting us this week, and in welcoming you to Dakar for this Mid-Term Review of IDA17. Allow me, too, to offer my most heartfelt condolences to the people of France, and the people of Lebanon, following the horrific attacks that took place in Paris and in Beirut last week. Our work here this week, to do our utmost for the poorest, is all the more urgent in the face of fragility, conflict, and violence across the world.   When we last met for the IDA Mid Term Review in Abidjan, African was one of the fastest-growing regions, underpinned by sound macroeconomic management and rising prices for our primary commodities, with a signficantly improved business climate that attracted a wide range of foreign inve","displayconttype":"Speeches and Transcripts","originating_unit":"Africa, AFR","originating_unit_exact":"Africa, AFR","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Speeches and Transcripts","node_id":"9a65501b67580edb6b9f177da33a1c7e684b0fca","wn_title":"IDA17 Mid-Term Review: Opening Session","wn_desc":"  Thank you Madam Chair. H.E. Macky Sall, President, Republic of Senegal; H.E. Lionel Zinsou, Prime Minister of Benin; Honorable Ministers; IDA Deputies; Distinguished Guests; Ladies and Gentlemen. I would like to join Sri Mulyani Indrawati in thanking the Government of Senegal for hosting us this week, and in welcoming you to Dakar for this Mid-Term Review of IDA17. Allow me, too, to offer my most heartfelt condolences to the people of France, and the people of Lebanon, following the horrific attacks that took place in Paris and in Beirut last week. Our work here this week, to do our utmost for the poorest, is all the more urgent in the face of fragility, conflict, and violence across the world.   When we last met for the IDA Mid Term Review in Abidjan, African was one of the fastest-growing regions, underpinned by sound macroeconomic management and rising prices for our primary commodities, with a signficantly improved business climate that attracted a wide range of foreign investments.  This period of sustained economic growth, which averaged five percent per year and was dubbed “Africa Rising”, also led to reduced levels of poverty in the continent.    Fast-forward to the present day, and economic conditions are far more uncertain.  Africa is facing significant headwinds:   we have reached the end of the commodity super-cycle; the downturn in a number of emerging markets is impacting trade and investment; and the likely rise in global interest rates will further impact growth.  Yet the past decade’s record of growth must be sustained, and even accelerated.  The Bank’s commitment to such sustained growth is articulated in the twin goals of eliminating extreme poverty and boosting shared prosperity. And we are redoubling our efforts to help African countries achieve growth that is stronger, more resilient, more inclusive, and more sustainable.   A number of  issues are occupying our minds these days – sadly, the risk of conflict and violence has leapt to the top of that list, along with the continued influx of refugees from Africa and the Middle East;  the challenge of delivering on the newly agreed Sustainable Development Goals; and the hopes for reaching a bold and impactful agreement in Paris next month on climate change.    Solving each of these challenges requires that we forge partnerships, formulate ideas and commit to take action.  This  focus on partnerships, ideas and action represents the story of IDA17 – it is what we do, every day, in 80 countries around the world with our clients and partners.  The Mid-Term Review of IDA17 is a good opportunity to look back – and look ahead --  at how we can mobilize ideas, resources and a shared commitment to operate in an increasingly complex world.   Some important innovations were introduced under IDA17.  Here, at the mid-point in the cycle, we should ask ourselves which of these are ready to be scaled-up, and what sort of next-generation innovations IDA can support going forward. In this context, I would like to share three points. First, IDA responds and delivers.  There continues to be strong demand for IDA financing from our clients across all regions.   In FY15, the first year of IDA17, we delivered $19 billion in new commitments – a record for the first year of any IDA replenishment period.  That same year,  IDA disbursed nearly $13 billion through its various  instruments.   We have a strong pipeline of projects for the remainder of IDA17, with demand for IDA in many cases far exceeding the resources available.  Let me add that IDA stepped up to respond to shocks and emergencies.  No one could have anticipated the tragic outbreak of Ebola at the start of IDA17.  IDA responded to Ebola, in strong measure, through $1.2 billion in financing and Technical Assistance; as well as to other shocks such as the Nepal earthquake.  As a result of these two emergencies, the IDA17 Crisis Response Window  is now completely exhausted, thereby depleting our capacity to respond to the next wave of shocks and crises, including the impact of climate change.    Beyond just replenishing these funds, we need to look more critically at the nature of shocks and fragility which have prevented unleashing even higher, shared growth in Africa.  These shocks include natural disasters, as intensified by climate change; and fragility and conflict.  The increased frequency and intensity of weather-related events – floods, droughts, cyclones – indicates these are no longer one-off disasters to which we must respond.  Rather, they have become the norm and require a long-term plan for climate adaptation.  For this very reason, we will be launching an Africa Climate Business Plan at the CoP21 in Paris next month. Similarly, as we respond to crises, it is essential to examine the root causes of fragility – in Africa, it is often a result of geographic imbalances.  This phenomenon of “spatial inequality”, whereby we see “two countries within a country”, is evident is several African countries.  Better human development indicators in one region of a particular country correspond to higher levels of public investment in education and health in those same regions.  This imbalance perpetuates inequality, lack of opportunity, and eventually spurs conflict within countries. Beyond emergency responses, IDA17 has provided critical support to infrastructure and human development.  IDA17 financing is expected to provide, among other things, electricity access to an estimated 15 to 20 million people, vaccines for 200 million children, and basic health services for 65 million people.   Our work to date has also yielded significant improvements in maternal and child health indices, and rates of primary school completion, to name just two examples. Much has been achieved so far, but there is a large unfinished agenda which lies ahead. Notably, African countries must surmount the challenge of financing their massive infrastructure needs.  Rather than looking solely at energy and other projects in individual countries, we are intensifying our approach to Regional Integration, so as to create synergies and unleash the growth potential in sub-regional clusters of economies. Here, too, demand for IDA resources far exceeds supply, as the IDA Regional Window is already over-subscribed.         Which brings me to the second point about the rapidly changing landscape of development financing.   In IDA countries, the levels of investment needed to meet development objectives far exceed the domestic savings and existing development financing.   That is why several IDA countries, including our hosts here in Senegal, have gone to the global capital markets.  How can IDA respond to the needs of this group of countries for non-concessional borrowing?  What are the parameters within which such lending can help deliver real development results while maintaining both macroeconomic stability and debt sustainability?  We need the IDA of the future to  build on the successes achieved thus far, and be bold and innovative.  A proposal will be presented to you later in the week, which would better enable us to respond to the growing demand for the resources needed to invest in growth.  We need to help IDA borrowers unlock financing for critical investments in infrastructure and human development.  These funds will come from three primary sources:  1) domestic resource mobilization; 2) crowding in the private sector; and 3) IDA and other donors.  IDA borrowers need to generate resources for public investments – and the capacity to do so varies widely among IDA clients.  The IMF has produced an analysis of so-called “compliance gaps” in tax collection, to help countries build effective tax administration systems.  This support to tax authorities has the double-benefit of enhancing revenues and building trusted public institutions.     Crowding in the private sector is only possible when there is confidence in these institutions and transparent revenue collection.  And yet it takes time to build the confidence of the private sector to invest in IDA countries.  IDA is essential in supporting improvements in tax collection, and helping to strengthen and consolidate the overall governance that will attract private investment in these growth sectors.  Allow me to share a recent example of innovation in leveraging IDA resources.   The recently approved Sankofa Gas Project – a $500-million IDA payment guarantee, combined with a $200-million IBRD enclave loan guarantee -- is expected to mobilize $7.9 billion in new private investment in offshore natural gas in Ghana. This project will bring significant benefits to Ghana by fueling up to 1,000 megawatts of clean power generation, replacing polluting and expensive oil-burning electricity, and allowing Ghana to reduce its oil imports by up to 12 million barrels per year. More significantly, it is currently the largest private-sector investment being undertaken in Sub-Saharan Africa. We need the IDA of the future to build upon innovations such as Sankofa and to help meet the financing needs of the range of our client countries, including those with projects which can be financed through non-concessional lending.  While we have a number of faster-growing countries that are accessing global capital markets, IDA continues to play a critical role in poor and fragile countries which have huge development needs but no such access to the markets, not least for those 34 countries which receive IDA resources wholly or in part as grants. Examples include Central African Republic, Burundi, Liberia, and South Sudan. Aid also has a role to play in helping countries to build viable institutions and thereby exit out of fragility. And this is why IDA matters.  Resource mobilization in many of these countries is low and reliance on concessional finance is high. Aid supports critical spending in health, education, and social safety net programs.  In FY15, IDA doubled its lending to Fragile & Conflict-Affected States (the so-called FCS) compared to FY14. Support to these countries is critical, not just as individual borrowers but because their fragility can have significant externalities and spillover effects on neighboring countries, thereby jeopardizing the growth agenda for Africa as a whole. Our focus on FCS must be more than an aspirational target: addressing the drivers of fragility, and supporting inclusive growth will be critical to help prevent countries from slipping back into conflict and violence. This brings us to the third point:  IDA delivers in times and places of crisis.  The  ongoing flow of migrants from Africa and the Middle East highlights the critical  nexus between development, security and politics.  We have made important progress in this regard during IDA17.  In Africa, we have worked closely with the United Nations and other partners in three major regional initiatives – in the Great Lakes, the Sahel, and the Horn of Africa.  Each of these efforts was launched during joint visits by President Jim Kim, UN Secretary-General Ban Ki-moon, and heads of other partner agencies.  At the core of these initiatives is a simple yet profound principle:  where there is political willingness  to address security and development challenges, IDA’s technical skills, financing and convening power can be mobilized with other partners to reduce risks and manage economic recovery.  IDA serves as a platform to further step up our work on this agenda, demonstrating leadership and the ability to innovate and contribute. In August, the international community met  in Addis Ababa and committed to the ‘From Billions to Trillions Agenda’.  What will be IDA’s contribution to this agenda?  Clearly, concessional financing should remain at the core of IDA as the poorest of our member countries  need continued access to grant and concesssional resources. In the current environment of global economic slow-down and fiscal pressures on our donor governments, how will we continue to finance these concessional resources?  The session later this week will address the outcomes of the IDA17 Working Group on Long-Term Vision and Financial Sustainability.   More broadly, the ability to deliver on the SDGs requires that IDA borrowers improved their domestic revenue mobilization, with the capacity challenges I described earlier.  At the other end of the spectrum, countries that are accessing increased volumes of non-concessional borrowing require greater capacity in debt management and the ability to appraise projects for their technical and financial feasibility.  IDA is already working in these areas and stands ready to provide the needed support to those countries seeking to make the quantum leap to non-concessional borrowing.    With these three points, we see IDA in a period of transition. As we take stock of progress towards meeting the goals of IDA17, these new challenges in the global environment will inform the pillars and instruments of IDA18.  Our efforts to strengthen domestic resource mobilization will not be a “quick fix”. Rather, IDA18 – and beyond -- must include a sustained commitment to improve revenue administration;  enhance the governance of state-owned enterprises, most urgently that of state-owned electric utilities; and support compliance with simplified tax regimes. Operations such as Sankofa, now seen as an innovative approach to crowd in private funding,  must but be replicated many times over, so as to spur increased private investment in key productive sectors. As we consider this long-term vision for IDA, let us take note of recent innovations, opportunities to scale-up prior programs, and be open to further innovation to devise customized financial solutions to respond to the next set of development challenges for our increasingly diverse client base. Thank you again for the opportunity to offer these opening remarks.  I look forward to engaging  with you over the coming days on how to deliver on the remaining agenda for IDA17, and to look ahead at how we will work together to build a strong and sustainable IDA for the future.","upi":"000340678","master_date":"2015-11-18T09:30:00Z","master_date_srt":"2015-11-18T09:30:00Z","master_recent_date_srt":"2015-11-18T09:30:00Z","master_recent_date":"2015-11-18T09:30:00Z","masterregion_exact":"Africa","short_description":"IDA17 Mid-Term Review: Opening Session, Makhtar Diop, Vice President, Africa Region, Wednesday, November 18th at 9.30AM","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":"  Thank you Madam Chair. H.E. Macky Sall, President, Republic of Senegal; H.E. Lionel Zinsou, Prime Minister of Benin; Honorable Ministers; IDA Deputies; Distinguished Guests; Ladies and Gentlemen. I would like to join Sri Mulyani Indrawati in thanking the Government of Senegal for hosting us this week, and in welcoming you to Dakar for this Mid-Term Review of IDA17. Allow me, too, to offer my most heartfelt condolences to the people of France, and the people of Lebanon, following the horrific attacks that took place in Paris and in Beirut last week. Our work here this week, to do our utmost for the poorest, is all the more urgent in the face of fragility, conflict, and violence across the world.   When we last met for the IDA Mid Term Review in Abidjan, African was one of the fastest-growing regions, underpinned by sound macroeconomic management and rising prices for our primary commodities, with a signficantly improved business climate that attracted a wide range of foreign investments.  This period of sustained economic growth, which averaged five percent per year and was dubbed “Africa Rising”, also led to reduced levels of poverty in the continent.    Fast-forward to the present day, and economic conditions are far more uncertain.  Africa is facing significant headwinds:   we have reached the end of the commodity super-cycle; the downturn in a number of emerging markets is impacting trade and investment; and the likely rise in global interest rates will further impact growth.  Yet the past decade’s record of growth must be sustained, and even accelerated.  The Bank’s commitment to such sustained growth is articulated in the twin goals of eliminating extreme poverty and boosting shared prosperity. And we are redoubling our efforts to help African countries achieve growth that is stronger, more resilient, more inclusive, and more sustainable.   A number of  issues are occupying our minds these days – sadly, the risk of conflict and violence has leapt to the top of that list, along with the continued influx of refugees from Africa and the Middle East;  the challenge of delivering on the newly agreed Sustainable Development Goals; and the hopes for reaching a bold and impactful agreement in Paris next month on climate change.    Solving each of these challenges requires that we forge partnerships, formulate ideas and commit to take action.  This  focus on partnerships, ideas and action represents the story of IDA17 – it is what we do, every day, in 80 countries around the world with our clients and partners.  The Mid-Term Review of IDA17 is a good opportunity to look back – and look ahead --  at how we can mobilize ideas, resources and a shared commitment to operate in an increasingly complex world.   Some important innovations were introduced under IDA17.  Here, at the mid-point in the cycle, we should ask ourselves which of these are ready to be scaled-up, and what sort of next-generation innovations IDA can support going forward. In this context, I would like to share three points. First, IDA responds and delivers.  There continues to be strong demand for IDA financing from our clients across all regions.   In FY15, the first year of IDA17, we delivered $19 billion in new commitments – a record for the first year of any IDA replenishment period.  That same year,  IDA disbursed nearly $13 billion through its various  instruments.   We have a strong pipeline of projects for the remainder of IDA17, with demand for IDA in many cases far exceeding the resources available.  Let me add that IDA stepped up to respond to shocks and emergencies.  No one could have anticipated the tragic outbreak of Ebola at the start of IDA17.  IDA responded to Ebola, in strong measure, through $1.2 billion in financing and Technical Assistance; as well as to other shocks such as the Nepal earthquake.  As a result of these two emergencies, the IDA17 Crisis Response Window  is now completely exhausted, thereby depleting our capacity to respond to the next wave of shocks and crises, including the impact of climate change.    Beyond just replenishing these funds, we need to look more critically at the nature of shocks and fragility which have prevented unleashing even higher, shared growth in Africa.  These shocks include natural disasters, as intensified by climate change; and fragility and conflict.  The increased frequency and intensity of weather-related events – floods, droughts, cyclones – indicates these are no longer one-off disasters to which we must respond.  Rather, they have become the norm and require a long-term plan for climate adaptation.  For this very reason, we will be launching an Africa Climate Business Plan at the CoP21 in Paris next month. Similarly, as we respond to crises, it is essential to examine the root causes of fragility – in Africa, it is often a result of geographic imbalances.  This phenomenon of “spatial inequality”, whereby we see “two countries within a country”, is evident is several African countries.  Better human development indicators in one region of a particular country correspond to higher levels of public investment in education and health in those same regions.  This imbalance perpetuates inequality, lack of opportunity, and eventually spurs conflict within countries. Beyond emergency responses, IDA17 has provided critical support to infrastructure and human development.  IDA17 financing is expected to provide, among other things, electricity access to an estimated 15 to 20 million people, vaccines for 200 million children, and basic health services for 65 million people.   Our work to date has also yielded significant improvements in maternal and child health indices, and rates of primary school completion, to name just two examples. Much has been achieved so far, but there is a large unfinished agenda which lies ahead. Notably, African countries must surmount the challenge of financing their massive infrastructure needs.  Rather than looking solely at energy and other projects in individual countries, we are intensifying our approach to Regional Integration, so as to create synergies and unleash the growth potential in sub-regional clusters of economies. Here, too, demand for IDA resources far exceeds supply, as the IDA Regional Window is already over-subscribed.         Which brings me to the second point about the rapidly changing landscape of development financing.   In IDA countries, the levels of investment needed to meet development objectives far exceed the domestic savings and existing development financing.   That is why several IDA countries, including our hosts here in Senegal, have gone to the global capital markets.  How can IDA respond to the needs of this group of countries for non-concessional borrowing?  What are the parameters within which such lending can help deliver real development results while maintaining both macroeconomic stability and debt sustainability?  We need the IDA of the future to  build on the successes achieved thus far, and be bold and innovative.  A proposal will be presented to you later in the week, which would better enable us to respond to the growing demand for the resources needed to invest in growth.  We need to help IDA borrowers unlock financing for critical investments in infrastructure and human development.  These funds will come from three primary sources:  1) domestic resource mobilization; 2) crowding in the private sector; and 3) IDA and other donors.  IDA borrowers need to generate resources for public investments – and the capacity to do so varies widely among IDA clients.  The IMF has produced an analysis of so-called “compliance gaps” in tax collection, to help countries build effective tax administration systems.  This support to tax authorities has the double-benefit of enhancing revenues and building trusted public institutions.     Crowding in the private sector is only possible when there is confidence in these institutions and transparent revenue collection.  And yet it takes time to build the confidence of the private sector to invest in IDA countries.  IDA is essential in supporting improvements in tax collection, and helping to strengthen and consolidate the overall governance that will attract private investment in these growth sectors.  Allow me to share a recent example of innovation in leveraging IDA resources.   The recently approved Sankofa Gas Project – a $500-million IDA payment guarantee, combined with a $200-million IBRD enclave loan guarantee -- is expected to mobilize $7.9 billion in new private investment in offshore natural gas in Ghana. This project will bring significant benefits to Ghana by fueling up to 1,000 megawatts of clean power generation, replacing polluting and expensive oil-burning electricity, and allowing Ghana to reduce its oil imports by up to 12 million barrels per year. More significantly, it is currently the largest private-sector investment being undertaken in Sub-Saharan Africa. We need the IDA of the future to build upon innovations such as Sankofa and to help meet the financing needs of the range of our client countries, including those with projects which can be financed through non-concessional lending.  While we have a number of faster-growing countries that are accessing global capital markets, IDA continues to play a critical role in poor and fragile countries which have huge development needs but no such access to the markets, not least for those 34 countries which receive IDA resources wholly or in part as grants. Examples include Central African Republic, Burundi, Liberia, and South Sudan. Aid also has a role to play in helping countries to build viable institutions and thereby exit out of fragility. And this is why IDA matters.  Resource mobilization in many of these countries is low and reliance on concessional finance is high. Aid supports critical spending in health, education, and social safety net programs.  In FY15, IDA doubled its lending to Fragile & Conflict-Affected States (the so-called FCS) compared to FY14. Support to these countries is critical, not just as individual borrowers but because their fragility can have significant externalities and spillover effects on neighboring countries, thereby jeopardizing the growth agenda for Africa as a whole. Our focus on FCS must be more than an aspirational target: addressing the drivers of fragility, and supporting inclusive growth will be critical to help prevent countries from slipping back into conflict and violence. This brings us to the third point:  IDA delivers in times and places of crisis.  The  ongoing flow of migrants from Africa and the Middle East highlights the critical  nexus between development, security and politics.  We have made important progress in this regard during IDA17.  In Africa, we have worked closely with the United Nations and other partners in three major regional initiatives – in the Great Lakes, the Sahel, and the Horn of Africa.  Each of these efforts was launched during joint visits by President Jim Kim, UN Secretary-General Ban Ki-moon, and heads of other partner agencies.  At the core of these initiatives is a simple yet profound principle:  where there is political willingness  to address security and development challenges, IDA’s technical skills, financing and convening power can be mobilized with other partners to reduce risks and manage economic recovery.  IDA serves as a platform to further step up our work on this agenda, demonstrating leadership and the ability to innovate and contribute. In August, the international community met  in Addis Ababa and committed to the ‘From Billions to Trillions Agenda’.  What will be IDA’s contribution to this agenda?  Clearly, concessional financing should remain at the core of IDA as the poorest of our member countries  need continued access to grant and concesssional resources. In the current environment of global economic slow-down and fiscal pressures on our donor governments, how will we continue to finance these concessional resources?  The session later this week will address the outcomes of the IDA17 Working Group on Long-Term Vision and Financial Sustainability.   More broadly, the ability to deliver on the SDGs requires that IDA borrowers improved their domestic revenue mobilization, with the capacity challenges I described earlier.  At the other end of the spectrum, countries that are accessing increased volumes of non-concessional borrowing require greater capacity in debt management and the ability to appraise projects for their technical and financial feasibility.  IDA is already working in these areas and stands ready to provide the needed support to those countries seeking to make the quantum leap to non-concessional borrowing.    With these three points, we see IDA in a period of transition. As we take stock of progress towards meeting the goals of IDA17, these new challenges in the global environment will inform the pillars and instruments of IDA18.  Our efforts to strengthen domestic resource mobilization will not be a “quick fix”. Rather, IDA18 – and beyond -- must include a sustained commitment to improve revenue administration;  enhance the governance of state-owned enterprises, most urgently that of state-owned electric utilities; and support compliance with simplified tax regimes. Operations such as Sankofa, now seen as an innovative approach to crowd in private funding,  must but be replicated many times over, so as to spur increased private investment in key productive sectors. As we consider this long-term vision for IDA, let us take note of recent innovations, opportunities to scale-up prior programs, and be open to further innovation to devise customized financial solutions to respond to the next set of development challenges for our increasingly diverse client base. Thank you again for the opportunity to offer these opening remarks.  I look forward to engaging  with you over the coming days on how to deliver on the remaining agenda for IDA17, and to look ahead at how we will work together to build a strong and sustainable IDA for the future.","date":"2015-11-18T09:30:00Z","contenttype":"Speeches and Transcripts"},"_fe1ba434435d609b500d8ae1ec58d70351de3599":{"id":"fe1ba434435d609b500d8ae1ec58d70351de3599","title":"Africa Still Poised to Become the Next Great Investment Destination","countrycode":"CN,ET","country":"China,Ethiopia","country_exact":"China,Ethiopia","countrycode_exact":"CN,ET","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/opinion/2015/06/30/africa-still-poised-to-become-the-next-great-investment-destination","count":"China,Ethiopia","descr":"Africa Still Poised to Become the Next Great Investment Destination","keywd":"regions:Africa,country:China,country:Ethiopia","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","cqpath":"/content/wb-home/en/news/opinion/2015/06/30/africa-still-poised-to-become-the-next-great-investment-destination","regionname":"Africa","wcmsource":"cq5","content":" The commodities boom may be over, but sub-Saharan Africa is still experiencing growth, a remarkable fact considering that the continent is a net exporter of primary commodities. By adopting sound macroeconomic policies over the past two decades and sector reforms, many African economies have already shown that they can sustain a trajectory of economic growth and beat the “resource curse.” Despite considerable external challenges, African countries are now seeking to demonstrate that they can weather the end of the commodity super-cycle and achieve more sustainable and inclusive growth by diversifying their economies, boosting productivity and adopting policies that aid the poor.  Five African countries were among the top ten improvers globally in the 2015 Doing Business rankings for 2013/14. Overall, Africa accounted for the largest number of regulatory reforms—75 of the 230 worldwide.  The continent has become the second most attractive investment destination in the world – ranking just behind North America — as investors are looking beyond the more established markets of South Africa, Nigeria and Kenya. Increased investment and industrialization will help to unlock the potential for job creation and poverty reduction in African countries. Foreign direct investment (FDI) in the region has hit a record $60 billion, five times its 2000 level. For example, Chinese FDI to Africa rose to $3.5 billion in 2013, and nearly all African countries are benefiting from China’s participation today. In Ethiopia, total FDI inflows in 2013 accounted for 2 percent of GDP. Intra-African investment is also on the rise, creating a virtuous circle that encourages greater foreign investment. Investors in Africa nearly tripled their share of FDI projects over the last decade, from 8 percent in 2003 to 22.8 percent in 2013. The reason for this trend is simple. The world’s eyes are turned toward Africa’s market of one billion people, including a growing middle class. Investors also see significant opportunities to invest in Africa’s non-commodities sectors:  financial services, construction and manufacturing now account for 50 percent of Chinese FDI in Africa. And while to date relocation of manufacturing is relatively limited, the potential is significant. With rising production costs in Asia, manufacturers have been looking at countries such as Ethiopia, Kenya and Rwanda. Today, China, Turkey and India are the top three job creators in Africa’s manufacturing sector. In an industrial zone outside Addis Ababa, the Chinese-owned Huajian factory — which opened in 2012 and became profitable in its first year of operation—reportedly plans to expand its workforce to 30,000 as part of a $2-billion investment, one more indication that “made in Ethiopia” could become the next “made in China.” But can Africa become a global outsourcing hub? Only if the right conditions are in place. Africa needs a skilled labor force. The sub-Saharan region will see more people joining the labor force in the next 20 years than the rest of the world combined. How will Africa reap the benefits of this demographic transition? The burgeoning working-age population will need to be gainfully employed, and significant investments must be made to support education and provide this “youth bulge” with the necessary skills to meet market demands. To that end, African countries and institutions are stepping up efforts to close the skills gap and capitalize on growing FDI flows to build greater technological capability, enroll more students in science and technology disciplines, and strengthen science and mathematics education at all levels. The ratio of scientists and researchers in sub-Saharan Africa stands at just 79 per million population, compared to a world average of 1,081 per million. Similarly, only 22 percent of African university graduates are emerging with degrees in the “STEM” disciplines, compared with a 40 percent ratio in China. To equip young people with the skills needed to sustain Africa’s decade of economic growth, 19 regional Centers of Excellence have been created in Western and Central Africa with World Bank support, and more are on the way. And this month, the Governments of Senegal, Rwanda and Ethiopia have partnered with business leaders to launch a regional innovation fund that will support 10,000 scientists. Vocational education geared to the demands of the private sector, another strategic priority, could also be addressed by establishing “school-based factories” and “factory-based schools.” Africa still needs a more conducive investment climate. This will require not only lowering transport and energy costs, but also eliminating formal and informal barriers to trade; increasing the flexibility of labor markets; and ensuring effective competition policies. By improving its regulatory structure for business, Rwanda — a country lacking natural resources — has seen its FDI increased more than threefold in the past five years. Increasingly sophisticated regional and global manufacturing supply chains demand cross-border predictability, transparency, reliability and accountability. Sub-Saharan Africa’s activity stands at 2 percent of total world trade, even though trade flows have expanded by 10 percent per year since 2000. The African Union’s Comprehensive Free Trade Agreement and single air-transport market, both to be in effect by 2017, place regional integration and trade at the center of the continent’s progress. The good news? Africa is one of the most integrated regions in the world, ranking behind only Europe and Southeast Asia for economic integration. Africa needs infrastructure. Although Africa is considered the next frontier for investors, future growth will depend on productivity increases and higher private investment to bridge the infrastructure gap. Sub-Saharan Africa, where infrastructure financing needs are estimated at $93 billion a year for the next decade, won’t be able to compete with other regions without roads and universal access to electricity, as well as enhanced ICT. In a region with limited participation in global trade, road freight moves no faster than a horse-drawn cart, and major ports are chronically choked due to lack of capacity. As trade volumes increase, demand for container traffic will increase by an average of 6 to 8 percent over the next 30 years according to the African Development Bank. Inadequate power supply remains the most serious infrastructure challenge. Regular power outages cost the African economy as a whole between 1 and 4 percentage points of GDP. Further, only one in three Africans has access to electricity, and those with power access typically pay up to seven times more than consumers elsewhere. It is estimated that China’s investment in its own physical capital may account for 50 percent of China’s growth over the past few decades. Today, two-thirds of roads in China are paved, compared with one-third in Senegal and just 7 percent in Kenya. At present, the concentration of investments in relatively short-term maturities reflects investors’ reluctance to engage in sectors such as infrastructure, where the returns are spread over a longer time frame, yet the rate of return on foreign investment is higher in Africa than in any other developing region. Right now, all the multilateral development banks together make up about 5 to 10 percent of the overall annual spending in infrastructure. Africa needs agribusiness. It is also time to accelerate the continent’s progress in boosting agriculture productivity and promoting growth in the places and sectors where the poor live and work. Agriculture still employs 60 to 70 percent of the workforce but accounts for less than 20 percent of total value-added. Despite substantial policy commitments, productivity in the agriculture sector remains disappointing. Supporting smallholders through investments in improved technologies, rural financial services and better access to markets is vital. Agriculture and agribusiness are expected to become a $1-trillion industry by 2030. Kenya is now the third-largest exporter of cut flowers in the world, with the industry employing more than 500,000 people. According to the Kenya National Bureau of Statistics, the floriculture industry exported 136,601 tons of product in 2014 and now accounts for 1.3 percent of the country’s GDP. But Kenya is adding more than half a million people to the labor force every year, so massive job creation is required. To boost responsible investment on the continent, the government of Ethiopia, China Development Bank (CDB), the World Bank Group (WBG), and the United Nations Industrial Development Organization (UNIDO) have joined forces to host the “Investing in Africa Forum,” in Addis Ababa on June 30 and July 1.  Policy makers, development partners, and foreign and local private investors will discuss what it will take to make Africa the next great investment destination. The bottom line? It will take partnerships between governments and the private sector, between African countries and their neighbors, between Africa and non-neighbor countries, and between Africa and its development partners. Africa has a unique opportunity to attract strategic, job-creating investment. The time for action is now.  Makhtar Diop, World Bank Vice President for the Africa Region | @Diop_WB Yuan Li, Executive Vice President, China Development Bank, People’s Republic of China Li Yong, Director General, the United Nations Industrial Development Organization (UNIDO) H.E. Ato Ahmed Shide, State Minister of Finance and Economic Development, Federal Democratic Republic of Ethiopia  Note: a shorter version has been published on the China Daily website  ","content_1000":" The commodities boom may be over, but sub-Saharan Africa is still experiencing growth, a remarkable fact considering that the continent is a net exporter of primary commodities. By adopting sound macroeconomic policies over the past two decades and sector reforms, many African economies have already shown that they can sustain a trajectory of economic growth and beat the “resource curse.” Despite considerable external challenges, African countries are now seeking to demonstrate that they can weather the end of the commodity super-cycle and achieve more sustainable and inclusive growth by diversifying their economies, boosting productivity and adopting policies that aid the poor.  Five African countries were among the top ten improvers globally in the 2015 Doing Business rankings for 2013/14. Overall, Africa accounted for the largest number of regulatory reforms—75 of the 230 worldwide.  The continent has become the second most attractive investment destination in the wo","displayconttype":"Opinion","originating_unit":"East Asia and Pacific, EAP","originating_unit_exact":"East Asia and Pacific, EAP","displayconttype_exact":"Opinion","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Opinion","node_id":"fe1ba434435d609b500d8ae1ec58d70351de3599","wn_title":"Africa Still Poised to Become the Next Great Investment Destination","wn_desc":" The commodities boom may be over, but sub-Saharan Africa is still experiencing growth, a remarkable fact considering that the continent is a net exporter of primary commodities. By adopting sound macroeconomic policies over the past two decades and sector reforms, many African economies have already shown that they can sustain a trajectory of economic growth and beat the “resource curse.” Despite considerable external challenges, African countries are now seeking to demonstrate that they can weather the end of the commodity super-cycle and achieve more sustainable and inclusive growth by diversifying their economies, boosting productivity and adopting policies that aid the poor.  Five African countries were among the top ten improvers globally in the 2015 Doing Business rankings for 2013/14. Overall, Africa accounted for the largest number of regulatory reforms—75 of the 230 worldwide.  The continent has become the second most attractive investment destination in the world – ranking just behind North America — as investors are looking beyond the more established markets of South Africa, Nigeria and Kenya. Increased investment and industrialization will help to unlock the potential for job creation and poverty reduction in African countries. Foreign direct investment (FDI) in the region has hit a record $60 billion, five times its 2000 level. For example, Chinese FDI to Africa rose to $3.5 billion in 2013, and nearly all African countries are benefiting from China’s participation today. In Ethiopia, total FDI inflows in 2013 accounted for 2 percent of GDP. Intra-African investment is also on the rise, creating a virtuous circle that encourages greater foreign investment. Investors in Africa nearly tripled their share of FDI projects over the last decade, from 8 percent in 2003 to 22.8 percent in 2013. The reason for this trend is simple. The world’s eyes are turned toward Africa’s market of one billion people, including a growing middle class. Investors also see significant opportunities to invest in Africa’s non-commodities sectors:  financial services, construction and manufacturing now account for 50 percent of Chinese FDI in Africa. And while to date relocation of manufacturing is relatively limited, the potential is significant. With rising production costs in Asia, manufacturers have been looking at countries such as Ethiopia, Kenya and Rwanda. Today, China, Turkey and India are the top three job creators in Africa’s manufacturing sector. In an industrial zone outside Addis Ababa, the Chinese-owned Huajian factory — which opened in 2012 and became profitable in its first year of operation—reportedly plans to expand its workforce to 30,000 as part of a $2-billion investment, one more indication that “made in Ethiopia” could become the next “made in China.” But can Africa become a global outsourcing hub? Only if the right conditions are in place. Africa needs a skilled labor force. The sub-Saharan region will see more people joining the labor force in the next 20 years than the rest of the world combined. How will Africa reap the benefits of this demographic transition? The burgeoning working-age population will need to be gainfully employed, and significant investments must be made to support education and provide this “youth bulge” with the necessary skills to meet market demands. To that end, African countries and institutions are stepping up efforts to close the skills gap and capitalize on growing FDI flows to build greater technological capability, enroll more students in science and technology disciplines, and strengthen science and mathematics education at all levels. The ratio of scientists and researchers in sub-Saharan Africa stands at just 79 per million population, compared to a world average of 1,081 per million. Similarly, only 22 percent of African university graduates are emerging with degrees in the “STEM” disciplines, compared with a 40 percent ratio in China. To equip young people with the skills needed to sustain Africa’s decade of economic growth, 19 regional Centers of Excellence have been created in Western and Central Africa with World Bank support, and more are on the way. And this month, the Governments of Senegal, Rwanda and Ethiopia have partnered with business leaders to launch a regional innovation fund that will support 10,000 scientists. Vocational education geared to the demands of the private sector, another strategic priority, could also be addressed by establishing “school-based factories” and “factory-based schools.” Africa still needs a more conducive investment climate. This will require not only lowering transport and energy costs, but also eliminating formal and informal barriers to trade; increasing the flexibility of labor markets; and ensuring effective competition policies. By improving its regulatory structure for business, Rwanda — a country lacking natural resources — has seen its FDI increased more than threefold in the past five years. Increasingly sophisticated regional and global manufacturing supply chains demand cross-border predictability, transparency, reliability and accountability. Sub-Saharan Africa’s activity stands at 2 percent of total world trade, even though trade flows have expanded by 10 percent per year since 2000. The African Union’s Comprehensive Free Trade Agreement and single air-transport market, both to be in effect by 2017, place regional integration and trade at the center of the continent’s progress. The good news? Africa is one of the most integrated regions in the world, ranking behind only Europe and Southeast Asia for economic integration. Africa needs infrastructure. Although Africa is considered the next frontier for investors, future growth will depend on productivity increases and higher private investment to bridge the infrastructure gap. Sub-Saharan Africa, where infrastructure financing needs are estimated at $93 billion a year for the next decade, won’t be able to compete with other regions without roads and universal access to electricity, as well as enhanced ICT. In a region with limited participation in global trade, road freight moves no faster than a horse-drawn cart, and major ports are chronically choked due to lack of capacity. As trade volumes increase, demand for container traffic will increase by an average of 6 to 8 percent over the next 30 years according to the African Development Bank. Inadequate power supply remains the most serious infrastructure challenge. Regular power outages cost the African economy as a whole between 1 and 4 percentage points of GDP. Further, only one in three Africans has access to electricity, and those with power access typically pay up to seven times more than consumers elsewhere. It is estimated that China’s investment in its own physical capital may account for 50 percent of China’s growth over the past few decades. Today, two-thirds of roads in China are paved, compared with one-third in Senegal and just 7 percent in Kenya. At present, the concentration of investments in relatively short-term maturities reflects investors’ reluctance to engage in sectors such as infrastructure, where the returns are spread over a longer time frame, yet the rate of return on foreign investment is higher in Africa than in any other developing region. Right now, all the multilateral development banks together make up about 5 to 10 percent of the overall annual spending in infrastructure. Africa needs agribusiness. It is also time to accelerate the continent’s progress in boosting agriculture productivity and promoting growth in the places and sectors where the poor live and work. Agriculture still employs 60 to 70 percent of the workforce but accounts for less than 20 percent of total value-added. Despite substantial policy commitments, productivity in the agriculture sector remains disappointing. Supporting smallholders through investments in improved technologies, rural financial services and better access to markets is vital. Agriculture and agribusiness are expected to become a $1-trillion industry by 2030. Kenya is now the third-largest exporter of cut flowers in the world, with the industry employing more than 500,000 people. According to the Kenya National Bureau of Statistics, the floriculture industry exported 136,601 tons of product in 2014 and now accounts for 1.3 percent of the country’s GDP. But Kenya is adding more than half a million people to the labor force every year, so massive job creation is required. To boost responsible investment on the continent, the government of Ethiopia, China Development Bank (CDB), the World Bank Group (WBG), and the United Nations Industrial Development Organization (UNIDO) have joined forces to host the “Investing in Africa Forum,” in Addis Ababa on June 30 and July 1.  Policy makers, development partners, and foreign and local private investors will discuss what it will take to make Africa the next great investment destination. The bottom line? It will take partnerships between governments and the private sector, between African countries and their neighbors, between Africa and non-neighbor countries, and between Africa and its development partners. Africa has a unique opportunity to attract strategic, job-creating investment. The time for action is now.  Makhtar Diop, World Bank Vice President for the Africa Region | @Diop_WB Yuan Li, Executive Vice President, China Development Bank, People’s Republic of China Li Yong, Director General, the United Nations Industrial Development Organization (UNIDO) H.E. Ato Ahmed Shide, State Minister of Finance and Economic Development, Federal Democratic Republic of Ethiopia  Note: a shorter version has been published on the China Daily website  ","master_date":"2015-06-30T18:03:00Z","master_date_srt":"2015-06-30T18:03:00Z","master_recent_date_srt":"2015-06-30T18:03:00Z","master_recent_date":"2015-06-30T18:03:00Z","masterregion_exact":"Africa","short_description":"Africa Still Poised to Become the Next Great Investment Destination","masterconttype_exact":"Opinion","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":" The commodities boom may be over, but sub-Saharan Africa is still experiencing growth, a remarkable fact considering that the continent is a net exporter of primary commodities. By adopting sound macroeconomic policies over the past two decades and sector reforms, many African economies have already shown that they can sustain a trajectory of economic growth and beat the “resource curse.” Despite considerable external challenges, African countries are now seeking to demonstrate that they can weather the end of the commodity super-cycle and achieve more sustainable and inclusive growth by diversifying their economies, boosting productivity and adopting policies that aid the poor.  Five African countries were among the top ten improvers globally in the 2015 Doing Business rankings for 2013/14. Overall, Africa accounted for the largest number of regulatory reforms—75 of the 230 worldwide.  The continent has become the second most attractive investment destination in the world – ranking just behind North America — as investors are looking beyond the more established markets of South Africa, Nigeria and Kenya. Increased investment and industrialization will help to unlock the potential for job creation and poverty reduction in African countries. Foreign direct investment (FDI) in the region has hit a record $60 billion, five times its 2000 level. For example, Chinese FDI to Africa rose to $3.5 billion in 2013, and nearly all African countries are benefiting from China’s participation today. In Ethiopia, total FDI inflows in 2013 accounted for 2 percent of GDP. Intra-African investment is also on the rise, creating a virtuous circle that encourages greater foreign investment. Investors in Africa nearly tripled their share of FDI projects over the last decade, from 8 percent in 2003 to 22.8 percent in 2013. The reason for this trend is simple. The world’s eyes are turned toward Africa’s market of one billion people, including a growing middle class. Investors also see significant opportunities to invest in Africa’s non-commodities sectors:  financial services, construction and manufacturing now account for 50 percent of Chinese FDI in Africa. And while to date relocation of manufacturing is relatively limited, the potential is significant. With rising production costs in Asia, manufacturers have been looking at countries such as Ethiopia, Kenya and Rwanda. Today, China, Turkey and India are the top three job creators in Africa’s manufacturing sector. In an industrial zone outside Addis Ababa, the Chinese-owned Huajian factory — which opened in 2012 and became profitable in its first year of operation—reportedly plans to expand its workforce to 30,000 as part of a $2-billion investment, one more indication that “made in Ethiopia” could become the next “made in China.” But can Africa become a global outsourcing hub? Only if the right conditions are in place. Africa needs a skilled labor force. The sub-Saharan region will see more people joining the labor force in the next 20 years than the rest of the world combined. How will Africa reap the benefits of this demographic transition? The burgeoning working-age population will need to be gainfully employed, and significant investments must be made to support education and provide this “youth bulge” with the necessary skills to meet market demands. To that end, African countries and institutions are stepping up efforts to close the skills gap and capitalize on growing FDI flows to build greater technological capability, enroll more students in science and technology disciplines, and strengthen science and mathematics education at all levels. The ratio of scientists and researchers in sub-Saharan Africa stands at just 79 per million population, compared to a world average of 1,081 per million. Similarly, only 22 percent of African university graduates are emerging with degrees in the “STEM” disciplines, compared with a 40 percent ratio in China. To equip young people with the skills needed to sustain Africa’s decade of economic growth, 19 regional Centers of Excellence have been created in Western and Central Africa with World Bank support, and more are on the way. And this month, the Governments of Senegal, Rwanda and Ethiopia have partnered with business leaders to launch a regional innovation fund that will support 10,000 scientists. Vocational education geared to the demands of the private sector, another strategic priority, could also be addressed by establishing “school-based factories” and “factory-based schools.” Africa still needs a more conducive investment climate. This will require not only lowering transport and energy costs, but also eliminating formal and informal barriers to trade; increasing the flexibility of labor markets; and ensuring effective competition policies. By improving its regulatory structure for business, Rwanda — a country lacking natural resources — has seen its FDI increased more than threefold in the past five years. Increasingly sophisticated regional and global manufacturing supply chains demand cross-border predictability, transparency, reliability and accountability. Sub-Saharan Africa’s activity stands at 2 percent of total world trade, even though trade flows have expanded by 10 percent per year since 2000. The African Union’s Comprehensive Free Trade Agreement and single air-transport market, both to be in effect by 2017, place regional integration and trade at the center of the continent’s progress. The good news? Africa is one of the most integrated regions in the world, ranking behind only Europe and Southeast Asia for economic integration. Africa needs infrastructure. Although Africa is considered the next frontier for investors, future growth will depend on productivity increases and higher private investment to bridge the infrastructure gap. Sub-Saharan Africa, where infrastructure financing needs are estimated at $93 billion a year for the next decade, won’t be able to compete with other regions without roads and universal access to electricity, as well as enhanced ICT. In a region with limited participation in global trade, road freight moves no faster than a horse-drawn cart, and major ports are chronically choked due to lack of capacity. As trade volumes increase, demand for container traffic will increase by an average of 6 to 8 percent over the next 30 years according to the African Development Bank. Inadequate power supply remains the most serious infrastructure challenge. Regular power outages cost the African economy as a whole between 1 and 4 percentage points of GDP. Further, only one in three Africans has access to electricity, and those with power access typically pay up to seven times more than consumers elsewhere. It is estimated that China’s investment in its own physical capital may account for 50 percent of China’s growth over the past few decades. Today, two-thirds of roads in China are paved, compared with one-third in Senegal and just 7 percent in Kenya. At present, the concentration of investments in relatively short-term maturities reflects investors’ reluctance to engage in sectors such as infrastructure, where the returns are spread over a longer time frame, yet the rate of return on foreign investment is higher in Africa than in any other developing region. Right now, all the multilateral development banks together make up about 5 to 10 percent of the overall annual spending in infrastructure. Africa needs agribusiness. It is also time to accelerate the continent’s progress in boosting agriculture productivity and promoting growth in the places and sectors where the poor live and work. Agriculture still employs 60 to 70 percent of the workforce but accounts for less than 20 percent of total value-added. Despite substantial policy commitments, productivity in the agriculture sector remains disappointing. Supporting smallholders through investments in improved technologies, rural financial services and better access to markets is vital. Agriculture and agribusiness are expected to become a $1-trillion industry by 2030. Kenya is now the third-largest exporter of cut flowers in the world, with the industry employing more than 500,000 people. According to the Kenya National Bureau of Statistics, the floriculture industry exported 136,601 tons of product in 2014 and now accounts for 1.3 percent of the country’s GDP. But Kenya is adding more than half a million people to the labor force every year, so massive job creation is required. To boost responsible investment on the continent, the government of Ethiopia, China Development Bank (CDB), the World Bank Group (WBG), and the United Nations Industrial Development Organization (UNIDO) have joined forces to host the “Investing in Africa Forum,” in Addis Ababa on June 30 and July 1.  Policy makers, development partners, and foreign and local private investors will discuss what it will take to make Africa the next great investment destination. The bottom line? It will take partnerships between governments and the private sector, between African countries and their neighbors, between Africa and non-neighbor countries, and between Africa and its development partners. Africa has a unique opportunity to attract strategic, job-creating investment. The time for action is now.  Makhtar Diop, World Bank Vice President for the Africa Region | @Diop_WB Yuan Li, Executive Vice President, China Development Bank, People’s Republic of China Li Yong, Director General, the United Nations Industrial Development Organization (UNIDO) H.E. Ato Ahmed Shide, State Minister of Finance and Economic Development, Federal Democratic Republic of Ethiopia  Note: a shorter version has been published on the China Daily website  ","date":"2015-06-30T18:03:00Z","contenttype":"Opinion"},"_a299e9b39531ba022f6f13648cb9dedb40250459":{"id":"a299e9b39531ba022f6f13648cb9dedb40250459","title":"Policymaking in Africa:  Reflections from Decades of Experience","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2015/03/31/policymaking-in-africa-reflections-from-decades-of-experience","descr":"Policymaking in Africa:  Reflections from Decades of Experience\nMakhtar Diop, Vice President for Africa, The World Bank\nUC Berkeley Regents’ Lecture Series – March 31, 2015","keywd":"subject:gender,subject:health,subject:climate change,subject:fragility-conflict-and-violence,subject:macroeconomic and structural policies,subject:agriculture and food security,regions:Africa","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","topic":"Gender,Health,Climate Change,Fragility-conflict-and-violence,Macroeconomic And Structural Policies,Agriculture And Food Security","cqpath":"/content/wb-home/en/news/speech/2015/03/31/policymaking-in-africa-reflections-from-decades-of-experience","regionname":"Africa","wcmsource":"cq5","content":" Good afternoon, and thank you all for coming. It is a great pleasure to be here at Berkeley, one of the great institutes of higher learning in the United States and the world; and such a friend to the African continent, with the Center for Effective Global Action, the Center for African Studies, the Masters of Development Practice Program, the Agriculture and Resource Economics Department, and countless scholars supporting Africa through world-class research across the university. I am indeed humbled and honored to have been invited here to Berkeley for this Regents’ Lectureship.  In my first two days here on campus I am already extremely energized by the students and faculty whom I have met. I welcome the opportunity to share some of my perspectives on African development from many years of experience in African policymaking in a variety of roles. During the discussion, I look forward to fielding your questions and hearing your perspectives.    I would like to begin with a brief look at the recent history of African economic development. Before independence, the economies of African countries were directed towards the export of raw commodities, with the structure of production, institutions, infrastructure and logistics systems all focused on exports.  Capital cities were established in coastal cities and ports became the cultural and economic centers of these colonial enclaves. Roads were built primarily from the mines (or sources of other commodities), to rail depots, to the coastal ports. Similarly, education systems were structured around administration of the colonial economy and curricula were geared to training the cadre of civil servants and not to providing the technical skills to transform the structure of the economies. There was less emphasis on science or engineering education – a legacy we are working to reverse today.    As African nations gained independence during the 1960s, there was a strong desire to transform raw commodities and increase the value added of goods. Countries sought to create an integrated production structure, producing goods from start to finish, what they used to call in French “les filières integrées”. In my home country of Senegal, the government sought to produce clothing: they invested in cotton production, along with spinning, weaving, knitting, and dying facilities. They built a garment factory owned and managed by the public sector. They did likewise with groundnuts (what you call peanuts), a plentiful crop in Senegal. They built factories to transform the nuts into peanut oil. To support these infant industries, governments employed highly protectionist policies, imposing high tariffs and other restrictions to trade. They sought to create a domestic private sector, however they did so by supporting individual firms.  This practice of “picking winners” created an elite of individuals well-connected to the political leadership.   To support these policies, governments created national development banks to finance state-owned enterprises, all of which was funded through heavy taxation of the agricultural sector. Government-created marketing boards paid prices to farmers that were below the export price, and the difference was used to finance these development activities. Under this approach, the state played a central role in the economy, and government became one of the main employers. Even as public employment expanded, quality of public service provision remained low. These policies created major macroeconomic imbalances:  high inflation and deeply inefficient state-owned enterprises; governance was weak; corruption was common; and patronage was rampant.  In fact, when I returned to Senegal in April 2000 as Minister of Economy and Finance, I paid off the final installment of the consolidated debt linked to the Non-Performing Loans accumulated by those that were granted credits more than two decades earlier.  This was just one example of financial sector restructuring that I witnessed during that period of implementing structural reforms. Yet, these policies did not lead to any significant transformation of African economies. They still depended largely on the export of unimproved commodities. What little manufacturing there was tended to be based on a strategy of “import substitution,” with limited exports and emphasis on producing low-value, low-technology goods.    For a time, high prices for exports of agricultural goods and oil sustained economic growth even in the context of these distortionary policies. But after a peak in economic growth in the mid-1970s, and the two oil-price shocks of 1973 and 1979, the realities of the global economy came to bear. Oil prices dropped dramatically in the 1980s, as did prices for other commodities. Combined with poor governance, per capita incomes in Africa declined consistently until the year 2000. In the context of this economic decline, the so-called “dependency theory” fell out of vogue as its limitations became more evident and governments shifted their focus to markets and getting prices right. In the 1980s, the international financial institutions introduced structural adjustment programs. Much has been written about these programs, with many critics and detractors. My intention is neither to defend nor pass judgment on them. These programs were intended to privatize, deregulate, and reduce trade barriers; and to help governments achieve macro stability and introduce markets and market prices into the economies in which they were working. Reforms undertaken through these programs were an essential prerequisite to achieving sustained economic growth.  Many African economies did indeed undertake major fiscal and monetary reforms during this period. I witnessed the effects of these programs first-hand, earlier in my career, in the 1980s and early-1990s, as a senior advisor serving on the Monitoring Committee for Structural Adjustment in Senegal.  This technocratic approach was very much supported at the highest political level. In Senegal, the Structural Adjustment Unit was located at the Office of the President with vast institutional powers.  A tradition emerged at that time to appoint a “technocrat” as Minister of Economy and Finance, starting with Mamadou Touré, the former Head of the Africa Department at the IMF. Yet, at that time, we focused so heavily on macroeconomic stability that we paid less attention to the microeconomic dynamics of economic growth. In the process, we cut government funding across sectors, which ultimately meant fewer resources for health systems, and irrigation, among other priorities.   Over time, as macro stability has improved, many African countries have also strengthened democratic institutions. The political setting evolved as the role of institutions and their scrutiny. The political economy of economic reforms evolved significantly. In the world of economic development, the work of people like Douglass North became more prominent.  It was clear that institutions matter and policymaking should reflect its centrality – in fact, it was the theme of the World Bank’s 2002 World Development Report. These institutions became the building blocks of the social contract between government and the governed; that it was impossible to separate the linkages between those institutions and the vested interests. So we began to understand the political economy of undertaking necessary reforms. Today, almost every country on the continent holds elections, as messy as they may sometimes be. On the whole, the continent is far freer than it was 25 years ago, and the results of the Nigerian presidential elections are another illustration that institutions are becoming stronger. The combination of economic and governance reforms has opened the way for this next phase of sustained economic growth as well as resilience. Unleashing African Growth Africa has indeed experienced consistent growth, but that growth has been heterogeneous across countries, with countries rich in natural resources growing much faster than those without.  Real GDP growth averaged 4.5 percent a year between 1995 and 2013, with nearly one-fifth of countries in the region growing at an average rate of 7 percent or better.  Overall, the size of the regional economy has more than doubled (in real terms) during this period.  The results of recent rebasing of the national accounts— the size of Ghana’s economy was 60 percent larger than previously thought and Nigeria’s was around 80 percent larger—suggest that the increase in Africa’s economic size during this period is likely to be even larger than previously thought.  Much of this increase reflects the growth of the services sector in African economies, largely in the informal sector, including traders, transporters, and shop owners who aren’t officially licensed. Increasingly, as our mutual colleague Louise Fox is fond of saying, “informal is normal”.  This informality has important fiscal implications: in West Africa, for example, the informal sector accounts for more than half of GDP but generates almost no government revenue. This presents particular challenges for governments seeking to provide basic services to their citizens. This sector has also been experiencing low productivity growth as it has limited access to technology, and those in the informal sector receive poor levels of social protection. AFRICA IS GROWING AND PROSPECTS ARE GOOD Prospects are for Africa to grow by 4.6% in 2015, and reach a growth level of 5.1% in 2017, lifted by infrastructure investment, increased agricultural output, and an expanding services sector.  On the external front, African growth was closely linked to the commodities boom, as well as the surge in cross-border financial flows, as reflected by increased direct investment between African countries.  On the internal front, sustained macroeconomic management resulted in lower inflation, better fiscal outcomes, and lower growth volatility. The way in which the African continent weathered the 2008-2009 financial crisis is a good indication of African Economic Resilience.  The regulatory environment has improved as well, as reflected in improved rankings in the World Bank’s “Doing Business” indicators. Africa is doing well and the investor confidence is rather high in spite of lower commodities prices. I was recently at the Africa CEO Forum and it is clear that investors see significant opportunities to invest in Africa in non-commodities sectors as the middle class is growing and labor costs in other parts of the world are increasing. And yet there are caveats and obstacles to sustaining this trajectory of African Growth:  it has been based on factor accumulation, particularly in capital-intensive sectors; there has been a very low poverty-to-growth elasticity; there has been low creation of quality jobs, leading to insufficient income growth; growth has been more rapid in capital-intensive sectors (mining, telecoms, and utilities after liberalization); and per capita growth has been lower than in other developing countries due to the stubbornly high fertility rate.  The factor accumulation model in Africa will face limitations in this period of lower commodity prices, as the second half of 2014 saw world oil prices plummet from $100 per barrel to around $50 per barrel.  Iron ore and copper prices dropped sharply in recent months as well. And so, notwithstanding these very bright prospects for Africa to sustain this trajectory of inclusive economic growth, I would like to address how to take this growth path to the next level while making significant progress in reducing poverty. The two themes that are central to sustaining and accelerating this growth trajectory are: reducing uncertainty and the perception of risk; while boosting productivity. Despite this sustained record of sound macro fundamentals in most African countries, rating agencies don’t take as sanguine a view of investment in Africa, as reflected in relatively high interest rates for sovereign debt, despite historically low interest rates worldwide. Similarly, the risk premia on bond issuance in Africa remain high – and these bond issues are for shorter tenors than the long-term capital investments that are being financed.  The concentration of investments in relatively short-term maturities reflects reluctance on the part of investors to engage in sectors where the returns are spread over a longer timeframe. On a smaller scale, farmers cannot adopt costly technologies, and thereby move up the productivity value chain, as the cost of capital is still high. In addition, uncertainty around rain-fed agriculture and the higher frequency of extreme weather events such as floods and droughts further constrain productivity growth in agriculture. Looking ahead, our focus is on reducing various sources of uncertainty, notably: conflict; agriculture and climate change; and effectiveness of institutions. Conflict and fragility exact a costly toll on African economies. Beyond the obvious human toll, it is important to address the underlying causes of fragility – fundamentally the competition for scarce resources – to help these countries move out of their low-equilibrium cycle of conflict and poverty.  Many of you are familiar with the work done in this area by Ted Miguel and others. I am delighted that we will have the opportunity to explore the area of conflict and fragility in Africa in much greater depth in June, when Ted and your CEGA colleagues here at Berkeley will host our 2nd Annual Bank Conference on Africa.  Improved agricultural productivity is essential to sustained, pro-poor growth in Africa. While agriculture’s share of output has fallen in recent years, 60 percent of Africa’s jobs – and 78 percent of its poor workers – are still engaged in agriculture.  Equally important, food makes up almost three-quarters of consumption expenditures for African’s poorest households. Africa’s steep levels of food imports – estimated recently at forty billion dollars annually, are twice the size of food exports, stressing foreign exchange reserves and putting pressure on the balance of payments. Africa’s growing urban populations face higher food prices as a result of poor agricultural productivity. Yet these productivity challenges need to be explored more thoroughly. A recent research program at the World Bank, “Agriculture in Africa: Telling Myths from Facts,” draws on new, extremely detailed agricultural data gathered across six countries to revisit conventional wisdom about African agriculture.   Another key element in agricultural productivity is water.  This variability has significant impacts on food security as well as knock-on effects on violence, as Ted Miguel has characterized in his work both on witch-killing in Tanzania and on global warming. Various African countries have experimented with crop insurance in order to mitigate these shocks. With the advent of mega-farms and agro industrial parks in select African countries, another ongoing debate is whether African governments should be supporting large-scale or small-scale agriculture. In fact, there is room for both large- and small-scale farming in Africa. Consider the fact that Africa has around 600 million hectares of uncultivated arable land, approximately 60 percent of the global total. African governments and their partners will need to ensure that the poorest are protected on their small farms, but not to the exclusion of large-scale agribusiness projects.   Going forward, this trajectory of economic growth and structural transformation will not be sustained without a fundamental change in the access to and cost of electricity.  Only one in three Africans has electricity access, and those who do pay up to seven times more than consumers elsewhere.  Regular power outages cost the African economy as a whole between 1 and 4 percentage points of GDP each year, and Africa needs additional generation capacity of 7-8 GW.  These challenges are even more pronounced in Africa’s fragile states.  This highlights the urgency of tapping Africa’s abundant hydro – where the continent is tapping only 8 percent of its potential -- geothermal, wind, and solar resources; as well as recent gas discoveries in countries such as Tanzania and Mozambique.   As the macroeconomic environment in Africa has improved, a higher volume of private sector resources are flowing into energy production. The number of independent power projects, or IPPs, in Sub-Saharan Africa quadrupled, from about 100 in the mid-1990s to more than 400 as of 2008; and this number continues to grow. IPPs in Cote d’Ivoire, Ghana, South Africa, Tanzania, and elsewhere have helped countries to scale up power production, but there is a long way to go. One recent estimate suggests that meeting existing demand for electricity in Africa would cost about $40 billion per year. A key to addressing these energy shortages is tapping private investment to create regional power pools for inter-country transmission. We at the World Bank are working with African leaders and their development partners, as part of our Regional Integration Program, to support power pools in Africa’s East, West, Central, and Southern sub-regions. Countries with abundant geothermal, gas, hydro, solar, and wind resources can feed their excess power supply into a common pool, while neighboring states with lesser endowments can benefit from this integrated approach to delivering electricity to their people. Beyond power generation and tapping Africa’s abundant resources, the greatest challenge going forward is to improve power transmission, where countries have suffered from inefficient and poorly run state-owned power distribution companies. This adds to the uncertainty and resulting risk profile of investing in power projects, and in African countries more broadly. As Africa grows and seeks to expand access to electricity, there is a huge opportunity for the continent to achieve green, low-emission growth.  As I noted earlier, most of Africa’s economic activity is concentrated in coastal cities.  And while Africa is responsible for a fraction of global carbon emissions, the continent bears the brunt of the impacts of climate change in terms of rising tides, coastal erosion, and increased intensity and variability of drought and floods (as we have seen most recently with the devastating floods in Malawi).  The ongoing negotiations for a global climate change accord, which will culminate in Paris this coming December at the so-called “CoP 21”, offer a unique opportunity to link the energy access agenda in Africa to global climate change. The international community can help Africa to achieve this “green energy revolution” by offering financing to buy down the cost of renewable energy technologies which remain more costly than conventional energy.   An added infrastructure and investment challenge for Africa is the high growth rate of urbanization.  The urban population in Africa is expected to increase almost threefold, reaching 1.3 billion inhabitants in 2050. Cities can be powerful engines that stimulate trade, innovation, and structural transformation. However, sound planning is essential to meet the needs of these growing cities such as housing, utilities, health, and education.  If we fail to do so, we risk losing the productivity gains associated with agglomeration. Current challenges include urban mobility, housing/slums, safety and more importantly the subnational government capacity. This is particularly important as countries are increasingly moving to a more decentralized model of government organization (such as in Kenya).   Beyond the physical capital that will fuel sustained economic growth in Africa, the complementary priority is to grow the continent’s human capital as well. While Africa has achieved significant improvements in access to primary education, per the Millennium Development Goals, we must now focus on the quality of learning outcomes.  As I mentioned earlier, education systems under colonial regimes emphasized public administration, to train a cadre of civil servants.  Our focus must now turn to building the cadre of scientists, engineers, and other technicians.     Skilled graduates will help Africa to move up the value chain and achieve critical productivity increases needed for structural transformation.  Fewer than 22 percent of university graduates in Africa earn degrees in science, technology, engineering, and mathematics (the so-called “STEM” fields), compared with nearly 40 percent in China. The World Bank’s renewed focus on higher education is intended to help create this cadre of scientists and engineers, as well as teachers who will help to improve learning outcomes at the primary and secondary levels across Africa. These learning outcomes, and the creation of human capital, are an equally important element of African productivity and income growth. It is clear that we should move away from the idea that higher education is a luxury good for African countries. Quality higher education is central to delivering quality primary and secondary education with a stronger emphasis on science and math. Finally, it is clear that without a healthy population, there can be no hope for sustained economic growth.  Relatively low levels of spending on health systems have resulted in high out-of-pocket spending by African households.  An increased focus on health financing is essential, to improve basic health indicators but also to enable African countries to respond to communicable diseases. Beyond the crisis response to the recent Ebola outbreak in West Africa, we see the fundamental importance of building resilient basic health systems to increase life expectancy, which remains low in most African countries. Some African countries have recently adopted creative solutions to increase access to and quality of health care, including so-called “results-based financing”, whereby health centers receive resources per service rendered rather than a flat budget.  Evidence from Zimbabwe, Zambia, Rwanda, Burundi, and the Democratic Republic of the Congo suggests that such financing increases accessing of pre-natal care, institutional childbirths, and post-natal care visits.  Not only is coverage improving, but so is the quality of care provided by these centers.  It is high time to move from the disease-specific financing and targeting to a more holistic health-systems approach.  I hope that the post-2015 discussions on SDGs will provide an opportunity to shift the focus and terms of health financing. It is also clear that none of these gains in building physical and human capital will reduce poverty without working towards gender equality.  The World Bank has made achieving gender equality a top priority. Our Gender Innovation Lab is conducting rigorous impact evaluations to identify solutions to close the gender gap.  For example, evidence from Uganda suggests that the right combination of vocational and life skills training can dramatically improve adolescent girls’ livelihoods. In Burkina Faso, our researchers found that financially empowering adolescent girls and their families can significantly and positively impact their sexual behavior and health. Some African countries have made noteworthy progress in areas such as political participation in parliamentary representation.  Gender equality remains at the center of our work in Africa. In conclusion, one of the most important lessons that I’ve learned from decades on “both sides of the table” – as a Minister, as an IMF Economist, as a World Bank Country Director, and now as Vice President for the Africa Region -- is that African growth transcends mere economics. African growth depends on politics; it depends on the social contract between the government and the governed; and it depends on a host of other factors. The challenge for political leaders in the African context is to sustain an accelerated reform agenda while navigating the complexities of a competitive political process.  Too often, vested interests who are threatened by the impact of pro-poor and pro-growth reforms are over-represented in the political sphere, making it harder to build the necessary consensus to enact and sustain reforms. Some concluding thoughts: Higher levels of savings are needed in Africa – at both the public and household levels – to sustain investment and a smooth growth trajectory over time.  Those savings decisions by households reflect a combination of income level, inter-temporal, and inter-generational decisions, as well as the prevailing level of uncertainty.  We expect African households to experience increasing levels of income and confidence, as uncertainty diminishes, resulting in higher levels of savings to plan for future generations.Shocks and temporary setbacks should not divert us from our long-terms goals of Africa’s development.  Success in achieving those goals will be built on sound economic principles, as African leaders must also remain pragmatic and develop their own home-grown solutions.  As the proverb offered by one of China’s leaders says, “it doesn’t matter whether a cat is white or black, as long as it catches mice”.Various models for structural transformation will need to be adapted to our unique circumstances and conditions in various African countries.  No single approach will be suitable for the entire continent. Often the question is asked as to which economic model Africa should adopt.  I would answer: “the African model”, or more precisely, “the African models”. Which is why institutions such as Berkeley are so important as they are contributing so much in building the empirical basis on which African policy makers can make the right choices. African economies can continue to grow and transform to sustain economic growth. But they will need support to overcome certain obstacles; to sustain the commitment on the part of national governments and their citizens; and to access the technical support of excellent research and practitioners to solve the most difficult problems.  I’m thankful to the Berkeley community for your contributions to the body of research that will help address these challenges. Thank you again for this profound honor to speak here at Berkeley.  I look forward to the remaining exchanges I will have with various groups of students and faculty over the course of the coming week.  I would be happy to entertain questions and use our remaining time for a free-flowing discussion of African challenges and solutions. Thank you very much.  ","content_1000":" Good afternoon, and thank you all for coming. It is a great pleasure to be here at Berkeley, one of the great institutes of higher learning in the United States and the world; and such a friend to the African continent, with the Center for Effective Global Action, the Center for African Studies, the Masters of Development Practice Program, the Agriculture and Resource Economics Department, and countless scholars supporting Africa through world-class research across the university. I am indeed humbled and honored to have been invited here to Berkeley for this Regents’ Lectureship.  In my first two days here on campus I am already extremely energized by the students and faculty whom I have met. I welcome the opportunity to share some of my perspectives on African development from many years of experience in African policymaking in a variety of roles. During the discussion, I look forward to fielding your questions and hearing your perspectives.    I would like to begin wi","displayconttype":"Speeches and Transcripts","originating_unit":"Africa, AFR","originating_unit_exact":"Africa, AFR","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Speeches and Transcripts","node_id":"a299e9b39531ba022f6f13648cb9dedb40250459","wn_title":"Policymaking in Africa:  Reflections from Decades of Experience","wn_desc":" Good afternoon, and thank you all for coming. It is a great pleasure to be here at Berkeley, one of the great institutes of higher learning in the United States and the world; and such a friend to the African continent, with the Center for Effective Global Action, the Center for African Studies, the Masters of Development Practice Program, the Agriculture and Resource Economics Department, and countless scholars supporting Africa through world-class research across the university. I am indeed humbled and honored to have been invited here to Berkeley for this Regents’ Lectureship.  In my first two days here on campus I am already extremely energized by the students and faculty whom I have met. I welcome the opportunity to share some of my perspectives on African development from many years of experience in African policymaking in a variety of roles. During the discussion, I look forward to fielding your questions and hearing your perspectives.    I would like to begin with a brief look at the recent history of African economic development. Before independence, the economies of African countries were directed towards the export of raw commodities, with the structure of production, institutions, infrastructure and logistics systems all focused on exports.  Capital cities were established in coastal cities and ports became the cultural and economic centers of these colonial enclaves. Roads were built primarily from the mines (or sources of other commodities), to rail depots, to the coastal ports. Similarly, education systems were structured around administration of the colonial economy and curricula were geared to training the cadre of civil servants and not to providing the technical skills to transform the structure of the economies. There was less emphasis on science or engineering education – a legacy we are working to reverse today.    As African nations gained independence during the 1960s, there was a strong desire to transform raw commodities and increase the value added of goods. Countries sought to create an integrated production structure, producing goods from start to finish, what they used to call in French “les filières integrées”. In my home country of Senegal, the government sought to produce clothing: they invested in cotton production, along with spinning, weaving, knitting, and dying facilities. They built a garment factory owned and managed by the public sector. They did likewise with groundnuts (what you call peanuts), a plentiful crop in Senegal. They built factories to transform the nuts into peanut oil. To support these infant industries, governments employed highly protectionist policies, imposing high tariffs and other restrictions to trade. They sought to create a domestic private sector, however they did so by supporting individual firms.  This practice of “picking winners” created an elite of individuals well-connected to the political leadership.   To support these policies, governments created national development banks to finance state-owned enterprises, all of which was funded through heavy taxation of the agricultural sector. Government-created marketing boards paid prices to farmers that were below the export price, and the difference was used to finance these development activities. Under this approach, the state played a central role in the economy, and government became one of the main employers. Even as public employment expanded, quality of public service provision remained low. These policies created major macroeconomic imbalances:  high inflation and deeply inefficient state-owned enterprises; governance was weak; corruption was common; and patronage was rampant.  In fact, when I returned to Senegal in April 2000 as Minister of Economy and Finance, I paid off the final installment of the consolidated debt linked to the Non-Performing Loans accumulated by those that were granted credits more than two decades earlier.  This was just one example of financial sector restructuring that I witnessed during that period of implementing structural reforms. Yet, these policies did not lead to any significant transformation of African economies. They still depended largely on the export of unimproved commodities. What little manufacturing there was tended to be based on a strategy of “import substitution,” with limited exports and emphasis on producing low-value, low-technology goods.    For a time, high prices for exports of agricultural goods and oil sustained economic growth even in the context of these distortionary policies. But after a peak in economic growth in the mid-1970s, and the two oil-price shocks of 1973 and 1979, the realities of the global economy came to bear. Oil prices dropped dramatically in the 1980s, as did prices for other commodities. Combined with poor governance, per capita incomes in Africa declined consistently until the year 2000. In the context of this economic decline, the so-called “dependency theory” fell out of vogue as its limitations became more evident and governments shifted their focus to markets and getting prices right. In the 1980s, the international financial institutions introduced structural adjustment programs. Much has been written about these programs, with many critics and detractors. My intention is neither to defend nor pass judgment on them. These programs were intended to privatize, deregulate, and reduce trade barriers; and to help governments achieve macro stability and introduce markets and market prices into the economies in which they were working. Reforms undertaken through these programs were an essential prerequisite to achieving sustained economic growth.  Many African economies did indeed undertake major fiscal and monetary reforms during this period. I witnessed the effects of these programs first-hand, earlier in my career, in the 1980s and early-1990s, as a senior advisor serving on the Monitoring Committee for Structural Adjustment in Senegal.  This technocratic approach was very much supported at the highest political level. In Senegal, the Structural Adjustment Unit was located at the Office of the President with vast institutional powers.  A tradition emerged at that time to appoint a “technocrat” as Minister of Economy and Finance, starting with Mamadou Touré, the former Head of the Africa Department at the IMF. Yet, at that time, we focused so heavily on macroeconomic stability that we paid less attention to the microeconomic dynamics of economic growth. In the process, we cut government funding across sectors, which ultimately meant fewer resources for health systems, and irrigation, among other priorities.   Over time, as macro stability has improved, many African countries have also strengthened democratic institutions. The political setting evolved as the role of institutions and their scrutiny. The political economy of economic reforms evolved significantly. In the world of economic development, the work of people like Douglass North became more prominent.  It was clear that institutions matter and policymaking should reflect its centrality – in fact, it was the theme of the World Bank’s 2002 World Development Report. These institutions became the building blocks of the social contract between government and the governed; that it was impossible to separate the linkages between those institutions and the vested interests. So we began to understand the political economy of undertaking necessary reforms. Today, almost every country on the continent holds elections, as messy as they may sometimes be. On the whole, the continent is far freer than it was 25 years ago, and the results of the Nigerian presidential elections are another illustration that institutions are becoming stronger. The combination of economic and governance reforms has opened the way for this next phase of sustained economic growth as well as resilience. Unleashing African Growth Africa has indeed experienced consistent growth, but that growth has been heterogeneous across countries, with countries rich in natural resources growing much faster than those without.  Real GDP growth averaged 4.5 percent a year between 1995 and 2013, with nearly one-fifth of countries in the region growing at an average rate of 7 percent or better.  Overall, the size of the regional economy has more than doubled (in real terms) during this period.  The results of recent rebasing of the national accounts— the size of Ghana’s economy was 60 percent larger than previously thought and Nigeria’s was around 80 percent larger—suggest that the increase in Africa’s economic size during this period is likely to be even larger than previously thought.  Much of this increase reflects the growth of the services sector in African economies, largely in the informal sector, including traders, transporters, and shop owners who aren’t officially licensed. Increasingly, as our mutual colleague Louise Fox is fond of saying, “informal is normal”.  This informality has important fiscal implications: in West Africa, for example, the informal sector accounts for more than half of GDP but generates almost no government revenue. This presents particular challenges for governments seeking to provide basic services to their citizens. This sector has also been experiencing low productivity growth as it has limited access to technology, and those in the informal sector receive poor levels of social protection. AFRICA IS GROWING AND PROSPECTS ARE GOOD Prospects are for Africa to grow by 4.6% in 2015, and reach a growth level of 5.1% in 2017, lifted by infrastructure investment, increased agricultural output, and an expanding services sector.  On the external front, African growth was closely linked to the commodities boom, as well as the surge in cross-border financial flows, as reflected by increased direct investment between African countries.  On the internal front, sustained macroeconomic management resulted in lower inflation, better fiscal outcomes, and lower growth volatility. The way in which the African continent weathered the 2008-2009 financial crisis is a good indication of African Economic Resilience.  The regulatory environment has improved as well, as reflected in improved rankings in the World Bank’s “Doing Business” indicators. Africa is doing well and the investor confidence is rather high in spite of lower commodities prices. I was recently at the Africa CEO Forum and it is clear that investors see significant opportunities to invest in Africa in non-commodities sectors as the middle class is growing and labor costs in other parts of the world are increasing. And yet there are caveats and obstacles to sustaining this trajectory of African Growth:  it has been based on factor accumulation, particularly in capital-intensive sectors; there has been a very low poverty-to-growth elasticity; there has been low creation of quality jobs, leading to insufficient income growth; growth has been more rapid in capital-intensive sectors (mining, telecoms, and utilities after liberalization); and per capita growth has been lower than in other developing countries due to the stubbornly high fertility rate.  The factor accumulation model in Africa will face limitations in this period of lower commodity prices, as the second half of 2014 saw world oil prices plummet from $100 per barrel to around $50 per barrel.  Iron ore and copper prices dropped sharply in recent months as well. And so, notwithstanding these very bright prospects for Africa to sustain this trajectory of inclusive economic growth, I would like to address how to take this growth path to the next level while making significant progress in reducing poverty. The two themes that are central to sustaining and accelerating this growth trajectory are: reducing uncertainty and the perception of risk; while boosting productivity. Despite this sustained record of sound macro fundamentals in most African countries, rating agencies don’t take as sanguine a view of investment in Africa, as reflected in relatively high interest rates for sovereign debt, despite historically low interest rates worldwide. Similarly, the risk premia on bond issuance in Africa remain high – and these bond issues are for shorter tenors than the long-term capital investments that are being financed.  The concentration of investments in relatively short-term maturities reflects reluctance on the part of investors to engage in sectors where the returns are spread over a longer timeframe. On a smaller scale, farmers cannot adopt costly technologies, and thereby move up the productivity value chain, as the cost of capital is still high. In addition, uncertainty around rain-fed agriculture and the higher frequency of extreme weather events such as floods and droughts further constrain productivity growth in agriculture. Looking ahead, our focus is on reducing various sources of uncertainty, notably: conflict; agriculture and climate change; and effectiveness of institutions. Conflict and fragility exact a costly toll on African economies. Beyond the obvious human toll, it is important to address the underlying causes of fragility – fundamentally the competition for scarce resources – to help these countries move out of their low-equilibrium cycle of conflict and poverty.  Many of you are familiar with the work done in this area by Ted Miguel and others. I am delighted that we will have the opportunity to explore the area of conflict and fragility in Africa in much greater depth in June, when Ted and your CEGA colleagues here at Berkeley will host our 2nd Annual Bank Conference on Africa.  Improved agricultural productivity is essential to sustained, pro-poor growth in Africa. While agriculture’s share of output has fallen in recent years, 60 percent of Africa’s jobs – and 78 percent of its poor workers – are still engaged in agriculture.  Equally important, food makes up almost three-quarters of consumption expenditures for African’s poorest households. Africa’s steep levels of food imports – estimated recently at forty billion dollars annually, are twice the size of food exports, stressing foreign exchange reserves and putting pressure on the balance of payments. Africa’s growing urban populations face higher food prices as a result of poor agricultural productivity. Yet these productivity challenges need to be explored more thoroughly. A recent research program at the World Bank, “Agriculture in Africa: Telling Myths from Facts,” draws on new, extremely detailed agricultural data gathered across six countries to revisit conventional wisdom about African agriculture.   Another key element in agricultural productivity is water.  This variability has significant impacts on food security as well as knock-on effects on violence, as Ted Miguel has characterized in his work both on witch-killing in Tanzania and on global warming. Various African countries have experimented with crop insurance in order to mitigate these shocks. With the advent of mega-farms and agro industrial parks in select African countries, another ongoing debate is whether African governments should be supporting large-scale or small-scale agriculture. In fact, there is room for both large- and small-scale farming in Africa. Consider the fact that Africa has around 600 million hectares of uncultivated arable land, approximately 60 percent of the global total. African governments and their partners will need to ensure that the poorest are protected on their small farms, but not to the exclusion of large-scale agribusiness projects.   Going forward, this trajectory of economic growth and structural transformation will not be sustained without a fundamental change in the access to and cost of electricity.  Only one in three Africans has electricity access, and those who do pay up to seven times more than consumers elsewhere.  Regular power outages cost the African economy as a whole between 1 and 4 percentage points of GDP each year, and Africa needs additional generation capacity of 7-8 GW.  These challenges are even more pronounced in Africa’s fragile states.  This highlights the urgency of tapping Africa’s abundant hydro – where the continent is tapping only 8 percent of its potential -- geothermal, wind, and solar resources; as well as recent gas discoveries in countries such as Tanzania and Mozambique.   As the macroeconomic environment in Africa has improved, a higher volume of private sector resources are flowing into energy production. The number of independent power projects, or IPPs, in Sub-Saharan Africa quadrupled, from about 100 in the mid-1990s to more than 400 as of 2008; and this number continues to grow. IPPs in Cote d’Ivoire, Ghana, South Africa, Tanzania, and elsewhere have helped countries to scale up power production, but there is a long way to go. One recent estimate suggests that meeting existing demand for electricity in Africa would cost about $40 billion per year. A key to addressing these energy shortages is tapping private investment to create regional power pools for inter-country transmission. We at the World Bank are working with African leaders and their development partners, as part of our Regional Integration Program, to support power pools in Africa’s East, West, Central, and Southern sub-regions. Countries with abundant geothermal, gas, hydro, solar, and wind resources can feed their excess power supply into a common pool, while neighboring states with lesser endowments can benefit from this integrated approach to delivering electricity to their people. Beyond power generation and tapping Africa’s abundant resources, the greatest challenge going forward is to improve power transmission, where countries have suffered from inefficient and poorly run state-owned power distribution companies. This adds to the uncertainty and resulting risk profile of investing in power projects, and in African countries more broadly. As Africa grows and seeks to expand access to electricity, there is a huge opportunity for the continent to achieve green, low-emission growth.  As I noted earlier, most of Africa’s economic activity is concentrated in coastal cities.  And while Africa is responsible for a fraction of global carbon emissions, the continent bears the brunt of the impacts of climate change in terms of rising tides, coastal erosion, and increased intensity and variability of drought and floods (as we have seen most recently with the devastating floods in Malawi).  The ongoing negotiations for a global climate change accord, which will culminate in Paris this coming December at the so-called “CoP 21”, offer a unique opportunity to link the energy access agenda in Africa to global climate change. The international community can help Africa to achieve this “green energy revolution” by offering financing to buy down the cost of renewable energy technologies which remain more costly than conventional energy.   An added infrastructure and investment challenge for Africa is the high growth rate of urbanization.  The urban population in Africa is expected to increase almost threefold, reaching 1.3 billion inhabitants in 2050. Cities can be powerful engines that stimulate trade, innovation, and structural transformation. However, sound planning is essential to meet the needs of these growing cities such as housing, utilities, health, and education.  If we fail to do so, we risk losing the productivity gains associated with agglomeration. Current challenges include urban mobility, housing/slums, safety and more importantly the subnational government capacity. This is particularly important as countries are increasingly moving to a more decentralized model of government organization (such as in Kenya).   Beyond the physical capital that will fuel sustained economic growth in Africa, the complementary priority is to grow the continent’s human capital as well. While Africa has achieved significant improvements in access to primary education, per the Millennium Development Goals, we must now focus on the quality of learning outcomes.  As I mentioned earlier, education systems under colonial regimes emphasized public administration, to train a cadre of civil servants.  Our focus must now turn to building the cadre of scientists, engineers, and other technicians.     Skilled graduates will help Africa to move up the value chain and achieve critical productivity increases needed for structural transformation.  Fewer than 22 percent of university graduates in Africa earn degrees in science, technology, engineering, and mathematics (the so-called “STEM” fields), compared with nearly 40 percent in China. The World Bank’s renewed focus on higher education is intended to help create this cadre of scientists and engineers, as well as teachers who will help to improve learning outcomes at the primary and secondary levels across Africa. These learning outcomes, and the creation of human capital, are an equally important element of African productivity and income growth. It is clear that we should move away from the idea that higher education is a luxury good for African countries. Quality higher education is central to delivering quality primary and secondary education with a stronger emphasis on science and math. Finally, it is clear that without a healthy population, there can be no hope for sustained economic growth.  Relatively low levels of spending on health systems have resulted in high out-of-pocket spending by African households.  An increased focus on health financing is essential, to improve basic health indicators but also to enable African countries to respond to communicable diseases. Beyond the crisis response to the recent Ebola outbreak in West Africa, we see the fundamental importance of building resilient basic health systems to increase life expectancy, which remains low in most African countries. Some African countries have recently adopted creative solutions to increase access to and quality of health care, including so-called “results-based financing”, whereby health centers receive resources per service rendered rather than a flat budget.  Evidence from Zimbabwe, Zambia, Rwanda, Burundi, and the Democratic Republic of the Congo suggests that such financing increases accessing of pre-natal care, institutional childbirths, and post-natal care visits.  Not only is coverage improving, but so is the quality of care provided by these centers.  It is high time to move from the disease-specific financing and targeting to a more holistic health-systems approach.  I hope that the post-2015 discussions on SDGs will provide an opportunity to shift the focus and terms of health financing. It is also clear that none of these gains in building physical and human capital will reduce poverty without working towards gender equality.  The World Bank has made achieving gender equality a top priority. Our Gender Innovation Lab is conducting rigorous impact evaluations to identify solutions to close the gender gap.  For example, evidence from Uganda suggests that the right combination of vocational and life skills training can dramatically improve adolescent girls’ livelihoods. In Burkina Faso, our researchers found that financially empowering adolescent girls and their families can significantly and positively impact their sexual behavior and health. Some African countries have made noteworthy progress in areas such as political participation in parliamentary representation.  Gender equality remains at the center of our work in Africa. In conclusion, one of the most important lessons that I’ve learned from decades on “both sides of the table” – as a Minister, as an IMF Economist, as a World Bank Country Director, and now as Vice President for the Africa Region -- is that African growth transcends mere economics. African growth depends on politics; it depends on the social contract between the government and the governed; and it depends on a host of other factors. The challenge for political leaders in the African context is to sustain an accelerated reform agenda while navigating the complexities of a competitive political process.  Too often, vested interests who are threatened by the impact of pro-poor and pro-growth reforms are over-represented in the political sphere, making it harder to build the necessary consensus to enact and sustain reforms. Some concluding thoughts: Higher levels of savings are needed in Africa – at both the public and household levels – to sustain investment and a smooth growth trajectory over time.  Those savings decisions by households reflect a combination of income level, inter-temporal, and inter-generational decisions, as well as the prevailing level of uncertainty.  We expect African households to experience increasing levels of income and confidence, as uncertainty diminishes, resulting in higher levels of savings to plan for future generations.Shocks and temporary setbacks should not divert us from our long-terms goals of Africa’s development.  Success in achieving those goals will be built on sound economic principles, as African leaders must also remain pragmatic and develop their own home-grown solutions.  As the proverb offered by one of China’s leaders says, “it doesn’t matter whether a cat is white or black, as long as it catches mice”.Various models for structural transformation will need to be adapted to our unique circumstances and conditions in various African countries.  No single approach will be suitable for the entire continent. Often the question is asked as to which economic model Africa should adopt.  I would answer: “the African model”, or more precisely, “the African models”. Which is why institutions such as Berkeley are so important as they are contributing so much in building the empirical basis on which African policy makers can make the right choices. African economies can continue to grow and transform to sustain economic growth. But they will need support to overcome certain obstacles; to sustain the commitment on the part of national governments and their citizens; and to access the technical support of excellent research and practitioners to solve the most difficult problems.  I’m thankful to the Berkeley community for your contributions to the body of research that will help address these challenges. Thank you again for this profound honor to speak here at Berkeley.  I look forward to the remaining exchanges I will have with various groups of students and faculty over the course of the coming week.  I would be happy to entertain questions and use our remaining time for a free-flowing discussion of African challenges and solutions. Thank you very much.  ","master_date":"2015-03-31T11:44:00Z","master_date_srt":"2015-03-31T11:44:00Z","master_recent_date_srt":"2015-03-31T11:44:00Z","master_recent_date":"2015-03-31T11:44:00Z","masterregion_exact":"Africa","short_description":"Policymaking in Africa:  Reflections from Decades of Experience\nMakhtar Diop, Vice President for Africa, The World Bank\nUC Berkeley Regents’ Lecture Series – March 31, 2015","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":" Good afternoon, and thank you all for coming. It is a great pleasure to be here at Berkeley, one of the great institutes of higher learning in the United States and the world; and such a friend to the African continent, with the Center for Effective Global Action, the Center for African Studies, the Masters of Development Practice Program, the Agriculture and Resource Economics Department, and countless scholars supporting Africa through world-class research across the university. I am indeed humbled and honored to have been invited here to Berkeley for this Regents’ Lectureship.  In my first two days here on campus I am already extremely energized by the students and faculty whom I have met. I welcome the opportunity to share some of my perspectives on African development from many years of experience in African policymaking in a variety of roles. During the discussion, I look forward to fielding your questions and hearing your perspectives.    I would like to begin with a brief look at the recent history of African economic development. Before independence, the economies of African countries were directed towards the export of raw commodities, with the structure of production, institutions, infrastructure and logistics systems all focused on exports.  Capital cities were established in coastal cities and ports became the cultural and economic centers of these colonial enclaves. Roads were built primarily from the mines (or sources of other commodities), to rail depots, to the coastal ports. Similarly, education systems were structured around administration of the colonial economy and curricula were geared to training the cadre of civil servants and not to providing the technical skills to transform the structure of the economies. There was less emphasis on science or engineering education – a legacy we are working to reverse today.    As African nations gained independence during the 1960s, there was a strong desire to transform raw commodities and increase the value added of goods. Countries sought to create an integrated production structure, producing goods from start to finish, what they used to call in French “les filières integrées”. In my home country of Senegal, the government sought to produce clothing: they invested in cotton production, along with spinning, weaving, knitting, and dying facilities. They built a garment factory owned and managed by the public sector. They did likewise with groundnuts (what you call peanuts), a plentiful crop in Senegal. They built factories to transform the nuts into peanut oil. To support these infant industries, governments employed highly protectionist policies, imposing high tariffs and other restrictions to trade. They sought to create a domestic private sector, however they did so by supporting individual firms.  This practice of “picking winners” created an elite of individuals well-connected to the political leadership.   To support these policies, governments created national development banks to finance state-owned enterprises, all of which was funded through heavy taxation of the agricultural sector. Government-created marketing boards paid prices to farmers that were below the export price, and the difference was used to finance these development activities. Under this approach, the state played a central role in the economy, and government became one of the main employers. Even as public employment expanded, quality of public service provision remained low. These policies created major macroeconomic imbalances:  high inflation and deeply inefficient state-owned enterprises; governance was weak; corruption was common; and patronage was rampant.  In fact, when I returned to Senegal in April 2000 as Minister of Economy and Finance, I paid off the final installment of the consolidated debt linked to the Non-Performing Loans accumulated by those that were granted credits more than two decades earlier.  This was just one example of financial sector restructuring that I witnessed during that period of implementing structural reforms. Yet, these policies did not lead to any significant transformation of African economies. They still depended largely on the export of unimproved commodities. What little manufacturing there was tended to be based on a strategy of “import substitution,” with limited exports and emphasis on producing low-value, low-technology goods.    For a time, high prices for exports of agricultural goods and oil sustained economic growth even in the context of these distortionary policies. But after a peak in economic growth in the mid-1970s, and the two oil-price shocks of 1973 and 1979, the realities of the global economy came to bear. Oil prices dropped dramatically in the 1980s, as did prices for other commodities. Combined with poor governance, per capita incomes in Africa declined consistently until the year 2000. In the context of this economic decline, the so-called “dependency theory” fell out of vogue as its limitations became more evident and governments shifted their focus to markets and getting prices right. In the 1980s, the international financial institutions introduced structural adjustment programs. Much has been written about these programs, with many critics and detractors. My intention is neither to defend nor pass judgment on them. These programs were intended to privatize, deregulate, and reduce trade barriers; and to help governments achieve macro stability and introduce markets and market prices into the economies in which they were working. Reforms undertaken through these programs were an essential prerequisite to achieving sustained economic growth.  Many African economies did indeed undertake major fiscal and monetary reforms during this period. I witnessed the effects of these programs first-hand, earlier in my career, in the 1980s and early-1990s, as a senior advisor serving on the Monitoring Committee for Structural Adjustment in Senegal.  This technocratic approach was very much supported at the highest political level. In Senegal, the Structural Adjustment Unit was located at the Office of the President with vast institutional powers.  A tradition emerged at that time to appoint a “technocrat” as Minister of Economy and Finance, starting with Mamadou Touré, the former Head of the Africa Department at the IMF. Yet, at that time, we focused so heavily on macroeconomic stability that we paid less attention to the microeconomic dynamics of economic growth. In the process, we cut government funding across sectors, which ultimately meant fewer resources for health systems, and irrigation, among other priorities.   Over time, as macro stability has improved, many African countries have also strengthened democratic institutions. The political setting evolved as the role of institutions and their scrutiny. The political economy of economic reforms evolved significantly. In the world of economic development, the work of people like Douglass North became more prominent.  It was clear that institutions matter and policymaking should reflect its centrality – in fact, it was the theme of the World Bank’s 2002 World Development Report. These institutions became the building blocks of the social contract between government and the governed; that it was impossible to separate the linkages between those institutions and the vested interests. So we began to understand the political economy of undertaking necessary reforms. Today, almost every country on the continent holds elections, as messy as they may sometimes be. On the whole, the continent is far freer than it was 25 years ago, and the results of the Nigerian presidential elections are another illustration that institutions are becoming stronger. The combination of economic and governance reforms has opened the way for this next phase of sustained economic growth as well as resilience. Unleashing African Growth Africa has indeed experienced consistent growth, but that growth has been heterogeneous across countries, with countries rich in natural resources growing much faster than those without.  Real GDP growth averaged 4.5 percent a year between 1995 and 2013, with nearly one-fifth of countries in the region growing at an average rate of 7 percent or better.  Overall, the size of the regional economy has more than doubled (in real terms) during this period.  The results of recent rebasing of the national accounts— the size of Ghana’s economy was 60 percent larger than previously thought and Nigeria’s was around 80 percent larger—suggest that the increase in Africa’s economic size during this period is likely to be even larger than previously thought.  Much of this increase reflects the growth of the services sector in African economies, largely in the informal sector, including traders, transporters, and shop owners who aren’t officially licensed. Increasingly, as our mutual colleague Louise Fox is fond of saying, “informal is normal”.  This informality has important fiscal implications: in West Africa, for example, the informal sector accounts for more than half of GDP but generates almost no government revenue. This presents particular challenges for governments seeking to provide basic services to their citizens. This sector has also been experiencing low productivity growth as it has limited access to technology, and those in the informal sector receive poor levels of social protection. AFRICA IS GROWING AND PROSPECTS ARE GOOD Prospects are for Africa to grow by 4.6% in 2015, and reach a growth level of 5.1% in 2017, lifted by infrastructure investment, increased agricultural output, and an expanding services sector.  On the external front, African growth was closely linked to the commodities boom, as well as the surge in cross-border financial flows, as reflected by increased direct investment between African countries.  On the internal front, sustained macroeconomic management resulted in lower inflation, better fiscal outcomes, and lower growth volatility. The way in which the African continent weathered the 2008-2009 financial crisis is a good indication of African Economic Resilience.  The regulatory environment has improved as well, as reflected in improved rankings in the World Bank’s “Doing Business” indicators. Africa is doing well and the investor confidence is rather high in spite of lower commodities prices. I was recently at the Africa CEO Forum and it is clear that investors see significant opportunities to invest in Africa in non-commodities sectors as the middle class is growing and labor costs in other parts of the world are increasing. And yet there are caveats and obstacles to sustaining this trajectory of African Growth:  it has been based on factor accumulation, particularly in capital-intensive sectors; there has been a very low poverty-to-growth elasticity; there has been low creation of quality jobs, leading to insufficient income growth; growth has been more rapid in capital-intensive sectors (mining, telecoms, and utilities after liberalization); and per capita growth has been lower than in other developing countries due to the stubbornly high fertility rate.  The factor accumulation model in Africa will face limitations in this period of lower commodity prices, as the second half of 2014 saw world oil prices plummet from $100 per barrel to around $50 per barrel.  Iron ore and copper prices dropped sharply in recent months as well. And so, notwithstanding these very bright prospects for Africa to sustain this trajectory of inclusive economic growth, I would like to address how to take this growth path to the next level while making significant progress in reducing poverty. The two themes that are central to sustaining and accelerating this growth trajectory are: reducing uncertainty and the perception of risk; while boosting productivity. Despite this sustained record of sound macro fundamentals in most African countries, rating agencies don’t take as sanguine a view of investment in Africa, as reflected in relatively high interest rates for sovereign debt, despite historically low interest rates worldwide. Similarly, the risk premia on bond issuance in Africa remain high – and these bond issues are for shorter tenors than the long-term capital investments that are being financed.  The concentration of investments in relatively short-term maturities reflects reluctance on the part of investors to engage in sectors where the returns are spread over a longer timeframe. On a smaller scale, farmers cannot adopt costly technologies, and thereby move up the productivity value chain, as the cost of capital is still high. In addition, uncertainty around rain-fed agriculture and the higher frequency of extreme weather events such as floods and droughts further constrain productivity growth in agriculture. Looking ahead, our focus is on reducing various sources of uncertainty, notably: conflict; agriculture and climate change; and effectiveness of institutions. Conflict and fragility exact a costly toll on African economies. Beyond the obvious human toll, it is important to address the underlying causes of fragility – fundamentally the competition for scarce resources – to help these countries move out of their low-equilibrium cycle of conflict and poverty.  Many of you are familiar with the work done in this area by Ted Miguel and others. I am delighted that we will have the opportunity to explore the area of conflict and fragility in Africa in much greater depth in June, when Ted and your CEGA colleagues here at Berkeley will host our 2nd Annual Bank Conference on Africa.  Improved agricultural productivity is essential to sustained, pro-poor growth in Africa. While agriculture’s share of output has fallen in recent years, 60 percent of Africa’s jobs – and 78 percent of its poor workers – are still engaged in agriculture.  Equally important, food makes up almost three-quarters of consumption expenditures for African’s poorest households. Africa’s steep levels of food imports – estimated recently at forty billion dollars annually, are twice the size of food exports, stressing foreign exchange reserves and putting pressure on the balance of payments. Africa’s growing urban populations face higher food prices as a result of poor agricultural productivity. Yet these productivity challenges need to be explored more thoroughly. A recent research program at the World Bank, “Agriculture in Africa: Telling Myths from Facts,” draws on new, extremely detailed agricultural data gathered across six countries to revisit conventional wisdom about African agriculture.   Another key element in agricultural productivity is water.  This variability has significant impacts on food security as well as knock-on effects on violence, as Ted Miguel has characterized in his work both on witch-killing in Tanzania and on global warming. Various African countries have experimented with crop insurance in order to mitigate these shocks. With the advent of mega-farms and agro industrial parks in select African countries, another ongoing debate is whether African governments should be supporting large-scale or small-scale agriculture. In fact, there is room for both large- and small-scale farming in Africa. Consider the fact that Africa has around 600 million hectares of uncultivated arable land, approximately 60 percent of the global total. African governments and their partners will need to ensure that the poorest are protected on their small farms, but not to the exclusion of large-scale agribusiness projects.   Going forward, this trajectory of economic growth and structural transformation will not be sustained without a fundamental change in the access to and cost of electricity.  Only one in three Africans has electricity access, and those who do pay up to seven times more than consumers elsewhere.  Regular power outages cost the African economy as a whole between 1 and 4 percentage points of GDP each year, and Africa needs additional generation capacity of 7-8 GW.  These challenges are even more pronounced in Africa’s fragile states.  This highlights the urgency of tapping Africa’s abundant hydro – where the continent is tapping only 8 percent of its potential -- geothermal, wind, and solar resources; as well as recent gas discoveries in countries such as Tanzania and Mozambique.   As the macroeconomic environment in Africa has improved, a higher volume of private sector resources are flowing into energy production. The number of independent power projects, or IPPs, in Sub-Saharan Africa quadrupled, from about 100 in the mid-1990s to more than 400 as of 2008; and this number continues to grow. IPPs in Cote d’Ivoire, Ghana, South Africa, Tanzania, and elsewhere have helped countries to scale up power production, but there is a long way to go. One recent estimate suggests that meeting existing demand for electricity in Africa would cost about $40 billion per year. A key to addressing these energy shortages is tapping private investment to create regional power pools for inter-country transmission. We at the World Bank are working with African leaders and their development partners, as part of our Regional Integration Program, to support power pools in Africa’s East, West, Central, and Southern sub-regions. Countries with abundant geothermal, gas, hydro, solar, and wind resources can feed their excess power supply into a common pool, while neighboring states with lesser endowments can benefit from this integrated approach to delivering electricity to their people. Beyond power generation and tapping Africa’s abundant resources, the greatest challenge going forward is to improve power transmission, where countries have suffered from inefficient and poorly run state-owned power distribution companies. This adds to the uncertainty and resulting risk profile of investing in power projects, and in African countries more broadly. As Africa grows and seeks to expand access to electricity, there is a huge opportunity for the continent to achieve green, low-emission growth.  As I noted earlier, most of Africa’s economic activity is concentrated in coastal cities.  And while Africa is responsible for a fraction of global carbon emissions, the continent bears the brunt of the impacts of climate change in terms of rising tides, coastal erosion, and increased intensity and variability of drought and floods (as we have seen most recently with the devastating floods in Malawi).  The ongoing negotiations for a global climate change accord, which will culminate in Paris this coming December at the so-called “CoP 21”, offer a unique opportunity to link the energy access agenda in Africa to global climate change. The international community can help Africa to achieve this “green energy revolution” by offering financing to buy down the cost of renewable energy technologies which remain more costly than conventional energy.   An added infrastructure and investment challenge for Africa is the high growth rate of urbanization.  The urban population in Africa is expected to increase almost threefold, reaching 1.3 billion inhabitants in 2050. Cities can be powerful engines that stimulate trade, innovation, and structural transformation. However, sound planning is essential to meet the needs of these growing cities such as housing, utilities, health, and education.  If we fail to do so, we risk losing the productivity gains associated with agglomeration. Current challenges include urban mobility, housing/slums, safety and more importantly the subnational government capacity. This is particularly important as countries are increasingly moving to a more decentralized model of government organization (such as in Kenya).   Beyond the physical capital that will fuel sustained economic growth in Africa, the complementary priority is to grow the continent’s human capital as well. While Africa has achieved significant improvements in access to primary education, per the Millennium Development Goals, we must now focus on the quality of learning outcomes.  As I mentioned earlier, education systems under colonial regimes emphasized public administration, to train a cadre of civil servants.  Our focus must now turn to building the cadre of scientists, engineers, and other technicians.     Skilled graduates will help Africa to move up the value chain and achieve critical productivity increases needed for structural transformation.  Fewer than 22 percent of university graduates in Africa earn degrees in science, technology, engineering, and mathematics (the so-called “STEM” fields), compared with nearly 40 percent in China. The World Bank’s renewed focus on higher education is intended to help create this cadre of scientists and engineers, as well as teachers who will help to improve learning outcomes at the primary and secondary levels across Africa. These learning outcomes, and the creation of human capital, are an equally important element of African productivity and income growth. It is clear that we should move away from the idea that higher education is a luxury good for African countries. Quality higher education is central to delivering quality primary and secondary education with a stronger emphasis on science and math. Finally, it is clear that without a healthy population, there can be no hope for sustained economic growth.  Relatively low levels of spending on health systems have resulted in high out-of-pocket spending by African households.  An increased focus on health financing is essential, to improve basic health indicators but also to enable African countries to respond to communicable diseases. Beyond the crisis response to the recent Ebola outbreak in West Africa, we see the fundamental importance of building resilient basic health systems to increase life expectancy, which remains low in most African countries. Some African countries have recently adopted creative solutions to increase access to and quality of health care, including so-called “results-based financing”, whereby health centers receive resources per service rendered rather than a flat budget.  Evidence from Zimbabwe, Zambia, Rwanda, Burundi, and the Democratic Republic of the Congo suggests that such financing increases accessing of pre-natal care, institutional childbirths, and post-natal care visits.  Not only is coverage improving, but so is the quality of care provided by these centers.  It is high time to move from the disease-specific financing and targeting to a more holistic health-systems approach.  I hope that the post-2015 discussions on SDGs will provide an opportunity to shift the focus and terms of health financing. It is also clear that none of these gains in building physical and human capital will reduce poverty without working towards gender equality.  The World Bank has made achieving gender equality a top priority. Our Gender Innovation Lab is conducting rigorous impact evaluations to identify solutions to close the gender gap.  For example, evidence from Uganda suggests that the right combination of vocational and life skills training can dramatically improve adolescent girls’ livelihoods. In Burkina Faso, our researchers found that financially empowering adolescent girls and their families can significantly and positively impact their sexual behavior and health. Some African countries have made noteworthy progress in areas such as political participation in parliamentary representation.  Gender equality remains at the center of our work in Africa. In conclusion, one of the most important lessons that I’ve learned from decades on “both sides of the table” – as a Minister, as an IMF Economist, as a World Bank Country Director, and now as Vice President for the Africa Region -- is that African growth transcends mere economics. African growth depends on politics; it depends on the social contract between the government and the governed; and it depends on a host of other factors. The challenge for political leaders in the African context is to sustain an accelerated reform agenda while navigating the complexities of a competitive political process.  Too often, vested interests who are threatened by the impact of pro-poor and pro-growth reforms are over-represented in the political sphere, making it harder to build the necessary consensus to enact and sustain reforms. Some concluding thoughts: Higher levels of savings are needed in Africa – at both the public and household levels – to sustain investment and a smooth growth trajectory over time.  Those savings decisions by households reflect a combination of income level, inter-temporal, and inter-generational decisions, as well as the prevailing level of uncertainty.  We expect African households to experience increasing levels of income and confidence, as uncertainty diminishes, resulting in higher levels of savings to plan for future generations.Shocks and temporary setbacks should not divert us from our long-terms goals of Africa’s development.  Success in achieving those goals will be built on sound economic principles, as African leaders must also remain pragmatic and develop their own home-grown solutions.  As the proverb offered by one of China’s leaders says, “it doesn’t matter whether a cat is white or black, as long as it catches mice”.Various models for structural transformation will need to be adapted to our unique circumstances and conditions in various African countries.  No single approach will be suitable for the entire continent. Often the question is asked as to which economic model Africa should adopt.  I would answer: “the African model”, or more precisely, “the African models”. Which is why institutions such as Berkeley are so important as they are contributing so much in building the empirical basis on which African policy makers can make the right choices. African economies can continue to grow and transform to sustain economic growth. But they will need support to overcome certain obstacles; to sustain the commitment on the part of national governments and their citizens; and to access the technical support of excellent research and practitioners to solve the most difficult problems.  I’m thankful to the Berkeley community for your contributions to the body of research that will help address these challenges. Thank you again for this profound honor to speak here at Berkeley.  I look forward to the remaining exchanges I will have with various groups of students and faculty over the course of the coming week.  I would be happy to entertain questions and use our remaining time for a free-flowing discussion of African challenges and solutions. Thank you very much.  ","date":"2015-03-31T11:44:00Z","contenttype":"Speeches and Transcripts"},"_a929d33352c3a05224ead02d5551ad01c57873f7":{"id":"a929d33352c3a05224ead02d5551ad01c57873f7","title":"Lessons for Africa from China’s Growth","countrycode":"CN","country":"China","country_exact":"China","countrycode_exact":"CN","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2015/01/13/lessons-for-africa-from-chinas-growth","count":"China","descr":"Makhtar Diop, World Bank Vice President for the Africa Region at Tsinghua University School of Economics and Management, Beijing, China","keywd":"subject:macroeconomic and structural policies,country:China,regions:Africa","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","topic":"Macroeconomic And Structural Policies","cqpath":"/content/wb-home/en/news/speech/2015/01/13/lessons-for-africa-from-chinas-growth","regionname":"Africa","wcmsource":"cq5","content":" Respected Professor QIAN Yingyi, Dean of the Tsinghua School of Economics and Management (SEM); and respected Professor BAI Chong-En, Associate Dean; esteemed faculty members; honored guests, ladies and gentlemen: Good afternoon. It is indeed an honor and great pleasure to be here at Tsinghua University today. I express my profound gratitude for this unique opportunity to address you today and for the warm hospitality you have extended to me and my delegation. I am humbled by your invitation to speak at this prestigious university, which boasts so many distinguished graduates. There is much talk of China and Africa in the news: A recent online search found more than 51 million articles! Much of this news is about current Chinese investment in Africa – solar power in Malawi, nuclear power in South Africa, oil production in South Sudan – and the discussion centers largely around Chinese investments and business ventures in African countries. In 2012, one-quarter of Africa’s merchandise exports came to China. Trade between China and Africa began long before this current phase of investments and the range of views that have accompanied it.  For example, Chinese coins from the Song dynasty, more than one thousand years ago (960-1279), have been recovered in Tanzania. There were Chinese ships sailing on the coast of Kenya in the 1400s, leaving Chinese porcelain behind and taking giraffes back to China with them. We in Africa enjoy our long, rich history with China, as China has accompanied Africa on the road to economic development since we achieved our independence more than fifty years ago.  China has taught us that history matters – as does a firm commitment to growth and development. As an African looking at China, today I want to go beyond the story of trade between Africa and China. The benefits of China’s investments for African development run far deeper than a mere mercantile relationship based on extraction and export of basic commodities. As I undertake this, my third visit to China, I am keen to draw on China’s experience and success and identify ways in which the World Bank can work with our African client countries to achieve a sustained trajectory of economic growth – growth that is inclusive and built on poverty reduction and shared prosperity.  In this current period of falling commodity prices, I am particularly keen to look to China’s experience for lessons to take forward. What Africa Can Learn from Chinese Growth – It is Possible to Change the Course of History – China Did So In 1978, China was among the poorest countries in the world.  Since then, China’s real per capita income has grown, on average, by more than 8 percent each year – this is indeed a striking level of growth. In contrast, per capita income in Africa actually fell consistently between 1976 and the mid-1990s. Since then, Africa has experienced consistent growth, but that growth has been very heterogeneous across countries, with countries rich in natural resources growing much faster than those without. What can Africa learn from Chinese growth? Africa has seen a remarkable turnaround in economic growth beginning in the mid-1990s.  Real GDP growth has averaged 4.5 percent a year during 1995-2013, with nearly one-fifth of countries in the region growing at an average rate of 7 percent or better.  The region’s growth has been comparable to that of developing countries outside the region, and has been outperformed only by East Asia and the Pacific region.  Overall, the size of the regional economy has more than doubled (in real terms) during this period.  The results of recent rebasing of the national accounts— the size of Ghana’s economy was 60 percent larger than previously thought and Nigeria’s was around 80 percent larger—suggest that the increase in Africa’s economic size during this period is likely to be even larger than previously thought.  Prospects are for Africa to grow by 4.6% in 2015, and reach a growth level of 5.1% in 2017, lifted by infrastructure investment, increased agricultural output, and an expanding services sector.  On the external front, African growth has been closely linked to the commodities boom – growth in China and the emergence of China as one of Africa’s main trade and investment partners – as well as the surge in cross-border financial flows. On the internal front, improved and sustained macroeconomic management in the Region has resulted in lower inflation, better fiscal outcomes, and lower growth volatility.  Crisis volatility was sharply reduced as the Region became less susceptible to macroeconomic disasters. The way in which the African continent weathered the 2008 financial crisis is a good indication of African Economic Resilience.  In addition, the regulatory environment has improved, as reflected in our rising Doing Business indicators. All that said, there are some caveats to this African Growth:  it has been based on factor accumulation, particularly in capital-intensive sectors; there has been a very low poverty-to-growth elasticity; there has been low creation of quality jobs, leading to insufficient income growth; growth has been more rapid in capital-intensive/low-productivity sectors; and per capita growth has been lower than in other developing countries due to the high fertility rate.  This factor accumulation model in Africa will face limitations as we now move into a period of lower commodity prices. I will focus today on a central lesson – China’s focus on boosting productivity – and the associated emphasis on rapid and large investments in human and physical capital, high savings rates, and an overarching ability to consistently drive toward long-term objectives.  I believe that African countries can draw important lessons from the ways in which China achieved this steady trajectory of growth.     Productivity Africa’s steady growth in real GDP – averaging 5% per year over the past decade, was possible thanks to strong underlying fundamentals in terms of inflation, fiscal deficits and financial sustainability.  It resulted from factor accumulation as investments in extractives and other commodities helped to grow the labor force.  As positive as such growth is, in fact it equates to 2.1% per capita real growth:  it has not been accompanied by an increase in productivity, and has been further limited by high rates of population growth. The bottom line is this: African economies must address the challenges of productivity in order to achieve sustained, shared growth and reduce overall poverty.   China has enjoyed extremely high increases in productivity over the last several decades. Early on, this productivity growth was driven by the agricultural sector, followed by productivity growth in township and village enterprises in the 1980s and 1990s, and then by privately-owned firms and a restructured state-owned sector into the 2000s. As I just mentioned, Africa’s recent growth has been highly dependent on exports of raw materials and commodities. Much of the population remains working in agriculture, and while many have shifted to working in services, much of that growth in services is restricted to low-productivity activities such as informal sector trade and production. However, to cite other examples, there is Uganda’s growth in manufacturing; and Rwanda has moved into the services sector. Some of the growth in African manufacturing has been supported by China, such as the Huajian shoe factory in Ethiopia, which opened in 2012 and turned a profit in its first year of operation. Manufacturing is not the only way to move up the value chain from exports of extractives. There is also the possibility of producing higher-value agricultural products, such as cassava flour in Nigeria, cut flowers in Kenya, or chocolate in Madagascar. These shifts may deliver some of the agricultural productivity gains that Africa needs. Some African countries have demonstrated success in diversifying exports: Rwanda has expanded exports of vegetables and beverages, while Ethiopia has expanded leather exports as well as horticulture. All three of these strategies – shifting into manufacturing, moving up the agriculture value chain, and diversifying across exports – can help Africa’s economies increase both productivity and resilience to global trends. Pro-Poor Growth Beyond growth, productivity increases in China have been dramatically pro-poor.   Between 1981 and 2004, China went from more than two-thirds of the population living on less than $1 a day, to fewer than one person in ten living in poverty. A recent analysis of the impact of growth on poverty, comparing China, India, and Brazil, found that China’s growth reduced poverty at a rate 50% higher than that of Brazil, and even higher relative to poverty reduction in India. This has been especially true for growth in agriculture, where growth has had four times as great an impact on reducing poverty than growth in manufacturing or services. In contrast, growth in Africa has been accompanied by much slower poverty reduction. In the developing world broadly, a 10% increase in national income translates into a 20% reduction in poverty. In Africa, the same increase in income translates into only a 7% reduction in poverty. A recent study across six African countries found that growth in agriculture reduced poverty by between 50 and 127% more than growth in other sectors.[i] And because more than three-quarters of Africa’s poor are employed in the agricultural sector, productivity improvements in agriculture – moving up the value chain – may hold exceptional promise for reducing poverty. A significant amount of China’s productivity growth has been driven by market reforms. While African nations enacted major market reforms throughout the 1980s, 1990s, and 2000s, the increases in productivity have not been at the levels that were hoped for.  So we must ask:  what is Africa missing? There has been a resurgence in the debate over the factors and prerequisites to structural transformation in Africa. Overall, economic transformation characterized by a reallocation of resources from low-productivity activities into modern, high-productivity sectors such as manufacturing has been lacking from Africa’s boom.  This has fueled a debate on whether sustainable growth in fact requires a shift in favor of manufacturing (as advocated by McMillan, Rodrik, Verduzco-Gallo); or moving up the quality ladder in sectors where countries can exploit and build on their current patterns of comparative advantage and sustain growth (as espoused by Hausmann and Hidalgo). As another example, India’s growth pattern suggests that a shift into high-productivity services, bypassing manufacturing, represents yet another path to sustainable growth (as noted by Ghani, Goswami and Kharas). Modern services such as software development, and manufactured products, enable innovative and technology-savvy countries to leverage services as an important driver of growth.  Although there is clearly no “one size fits all” approach, cross-country analysis points to a set of “horizontalist” (i.e., neutral across sectors) factors which have contributed to diversification: Improving infrastructure and trade networks; investing in human capital; encouraging financial deepening; reducing barriers to entry for new products; and R&D. Human Capital:  Education Beyond reforms that increased productivity, China has nurtured a population with high levels of human capital. The average years of schooling for Chinese adults (ages 15 and up) rose from 1.5 in 1950 to more than 7.5 in 2010, a five-fold increase! Clearly human capital has been one of many enabling factors in China’s meteoric growth. When we look at human capital in Africa by the simple metric of years of schooling during the same period, average years of schooling rose from 1.3 to 5.2, a four-fold increase. The really stark differences arise, however, when we examine the quality of schooling. While there are no direct comparisons of learning outcomes in various regions of China versus individual countries in Africa, there is a very real disparity between learning outcomes – with profound related impacts -- in Africa and China. Africa needs a skilled labor force in order to experience growth like China’s. After decades of limited engagement in post-secondary education, the World Bank Group and other partners are directing a long-overdue focus on higher education and, most importantly, on the content of university studies and the skills students need to enter the job market and contribute to Africa’s growth and development – notably, science and technology. Skilled graduates are crucial for Africa to move up the value chain and achieve critical productivity increases. Here – again – there is room to learn from China, where more than 40 percent of all tertiary degrees are awarded in science, technology, engineering, and mathematics (the so-called “STEM” fields). In contrast, the number of African university graduates students in STEM fields is closer to 22 percent. Africa needs scientists and engineers to improve the productivity of its crops and to build the infrastructure required by Africa’s booming cities. The quality of education and an emphasis on STEM will be essential to African productivity and income growth. This new direction has been recognized by the leaders who convened last March in Kigali, Rwanda, at a forum on Higher Education for Science, Technology, and Innovation. At the conclusion of the forum we committed to double the share of students graduating from African universities with degrees in science, mathematics, and technology by 2025, bringing Africa more in the range of China in this regard. China is already working with the Africa Region on this ambitious agenda and we welcome further cooperation. At the same time, Africa needs to get more students into tertiary education so that they have the option of studying science and technology. University (or other post-secondary) enrollment is under ten percent in Sub-Saharan Africa, the lowest of any region in the world. Some of the best evidence on improving lower levels of education comes from China. The World Bank recently reviewed hundreds of studies on improving primary education in middle- and low-income countries, and twenty-five studies from China informed recommendations for improving education in Africa and beyond, especially on effectively incorporating technology into schools. While I began this discussion with an emphasis on higher education, secondary (and even basic, quality primary) education remain essential to boosting productivity, particularly in the informal sector. Poor learning outcomes in turn impact the productive sector, in terms of shortages in qualified labor to meet the needs of the growing manufacturing sector, and to increase productivity in services sectors as well.  Another critical area for African human capital development is technical and vocational education and training – so-called “TVET”.  China’s success in developing the skills needed to adopt technology has created the conditions to attract investment in manufacturing.  Here again, Africa has much to learn from China’s experience in order to adopt new technologies and thereby create jobs.    Human Capital:  Health Another component of human capital is health. Allow me, first, to acknowledge China’s generous support to the response to the recent Ebola outbreak in West Africa. Beyond this crisis, we see the fundamental importance of improving basic health systems to increase life expectancy, which remains low in most African countries, and create viable health systems. China has demonstrated, for decades, a commitment to broadening access to health, beginning with the Cooperative Medical System and the so-called “barefoot doctors” in the 1950s. These programs offer valuable lessons in how to provide health care to rural areas that are suffering from inadequate health services.  It is clear that without a healthy population, there can be no hope for sustained economic growth.  African countries have recently adopted creative solutions to increase access to and quality of health care, including so-called “results-based financing”, whereby health centers receive resources per service rendered rather than a flat budget.  Evidence from Zimbabwe, Zambia, Rwanda, Burundi, and the Democratic Republic of the Congo suggests that such financing increases accessing of pre-natal care, institutional childbirths, and post-natal care visits. Evidence from Nigeria and Rwanda shows that not only is coverage improving, but so is the quality of care provided by these centers. And what about Agriculture? There are differing views on the role of agriculture in African development.  As indicated earlier, there is a view advocating a rapid move from agriculture into manufacturing, with higher value-addition to move the economy towards higher productivity.  In the context of current African economies, there is a lot to be learned from the Chinese experience in agriculture.  The first phase of Chinese growth, as noted earlier, was driven by agriculture.  Africa is a continent with the basic elements for successful agriculture – abundant land and water resources. The cost of food products in Africa weighs heavily on the balance of payments. For example, the Democratic Republic of Congo imports more than $1.5 billion per year worth of food, which places pressure on the balance of payments and depletes foreign exchange reserves.  Low productivity and low supply of food products in Africa is having an impact on prices and related negative impacts on the poorest countries. As one example, in one African country, a kilo of tomatoes currently costs nearly $8! As such, any changes to improve agricultural productivity and reduce the costs of the consumption basket will have a positive impact on lowering food costs and reduce pressure on wages as well. There is, as well, a pro-poor element to agricultural growth. It is possible to move up the value chain (for example, cut flowers in Kenya) and increase technology adoption.  Furthermore, as urbanization increases, increased agricultural productivity will provide food supply for urban populations and thereby enhance labor productivity. In the current context, there is no contradiction in advocating for both increasing agricultural productivity and manufacturing.  The experience of some Latin American countries shows that agriculture can play a major role in economic growth (for example, soy and poultry industries in Brazil) while also pursuing manufacturing at the same time. This can contribute to more inclusive growth and poverty reduction – as we have seen the elasticity of agricultural growth for reducing poverty. Physical Capital China has also invested heavily in physical capital. About two-thirds of roads in China are paved (compared with one-third of paved roads and just 7 percent of roads paved in select African countries). In China, 89 out of every 100 people have cell phone subscriptions, whereas just half of people in Tanzania and even fewer in the Congo have mobile telephones. But where we see the starkest difference is in access to power. Power consumption per capita in China is more than twenty times higher than in Nigeria or Kenya. China’s rapid advancement in physical capital is not surprising given the levels of investment: An estimate from the early 2000s suggested that more than 45 percent of national income in China was invested in physical capital. There is debate among economists as to the return on this investment relative to productivity growth. At least some estimates put this investment in physical capital as contributing to 50 percent of China’s growth in the post-reform years. One of the crucial constraints to growth in Africa is the lack of physical capital. It’s very difficult to develop higher-value, higher-return manufactures or even agricultural goods without access to roads and power. Consider, then, that fewer than one in three Africans has access to electricity (and only one in seven in rural areas) – in contrast  with near universal electricity coverage in China. Furthermore, consumers in Sub-Saharan African countries face the highest connection charges of any other region. Beyond simple investments in infrastructure, Africa also needs to make essential improvements in the efficiency of trade (such as simplifying border clearance processes and harmonizing customs regulations.   Savings Much of the investment that has fueled China’s exceptional growth has been facilitated by strikingly high savings rates. The most recent data suggest savings rates of about 50 percent in China, while the savings rates in most African countries are well under half of that. Some of China’s high savings comes from the corporate sector: Enterprises have risen in profitability, and limited access to bank financing has motivated enterprises to save in order to finance their own investments. When we look back at China, we see that household savings rates have risen dramatically along with public savings. How relevant is this for Africa? African growth has been driven to a significant extent by commodities, the prices for which can fluctuate wildly as we are seeing right now.  Higher levels of savings are needed in Africa – at both the public and household levels – to sustain the needed level of investment and a smooth growth trajectory over the long term. Savings decisions of households reflect a combination of income level, inter-temporal and inter-generational decisions, and the level of uncertainty in a country. We expect African households will experience increasing levels of income and confidence, as reduced levels of uncertainty, resulting in higher levels of savings to plan for future generations – as has been the case in China.  This transition to a higher rate of savings will be critical to supporting needed levels of investment. The fertility transition in Africa – another important factor in sustained economic growth -- has been much slower than in other regions. Fertility rates in three-quarters of African countries remain at four children or higher. Access to family planning and maternal health services – as well as education for girls – typically results in improved economic opportunity for women and lower fertility. Similarly, lower fertility rates can afford greater economic opportunity to women and improved economic growth overall.  Some governments in Africa are seeking innovative ways to achieve lower overall fertility rates. In Niger, for example, a so-called “School of Husbands” is delivered by trusted, traditional community leaders. This education program highlights the benefits of family planning and reproductive health. The World Bank is working with governments across the Sahel (the belt across Africa from Senegal to Eritrea) to strengthen reproductive health and empower women to make their own fertility choices in its $200-million Demographics in the Sahel Project. Of course, falling fertility links not only to increased savings but also to improved human capital for women.  These two factors always move together, and neither of them can be achieved alone. There are complementarities that make productivity growth, investments in human capital, and physical capital investments crucial ingredients to the overall growth recipe. Set goals and stick with them I don’t need to remind this esteemed audience of the wisdom offered by one of your former leaders:  “While the prospects are bright, the road has twists and turns”.  Shocks and temporary setbacks should not divert us from our long-term goals of Africa’s development.  Although productivity increases may have been the principal driver of China’s growth over the last 35 years, that growth has come from a variety of sectors: first agriculture, then village enterprises, then private firms. It seems that whenever one set of productivity-enhancing reforms has been exhausted, the Chinese economy found a new way to reignite productivity growth. Over this period, there has been an ongoing focus on productivity, through a range of policy choices that propelled China towards the goal of sustained economic growth.  Success in achieving economic growth with increased productivity, employment, and poverty reduction, will be built on sound economic principles. African leaders must also remain pragmatic and develop their own home-grown solutions.  As Deng Xiaoping said, “it doesn’t matter whether the cat is black or white, as long as it catches the mouse”. African countries need to bring pragmatic solutions to newly evolving problems. We must respond quickly and nimbly – and adapt our modus operandi to changing conditions – while maintaining a long-term perspective.      Conclusion I am humbled by the opportunity to draw on your country’s vast and successful experience. African countries are not going to mimic China’s institutions, nor should they. Rather, we must create the conditions to define our own growth path, based on our history, our culture and our institutions.  Various models for structural transformation, as offered by different groups of academics, will need to be adapted to our unique circumstances and the conditions in subsets of African countries.   No single approach will be suitable for the entire continent.  Often the question is asked as to which economic model Africa should adopt.  I would answer: “the African Model”, or more precisely, “the African Models”. The importance of such self-reliance is well-expressed by one of your former leaders, who wisely noted “We hope for foreign aid, but cannot be dependent on it.  We depend on our own efforts, and on the creative powers of our entire people.” We look forward to incorporating principles behind China’s impressive growth into the strategies of African nations as they seek to build on their improved growth of the last two decades. I hope that, going forward, Africa can look to China not only as a trading partner, but as a growth mentor. In turn, we look forward to sharing the African experience back with China. I thank you again for this opportunity to address you today, and to visit your prestigious university.      ","content_1000":" Respected Professor QIAN Yingyi, Dean of the Tsinghua School of Economics and Management (SEM); and respected Professor BAI Chong-En, Associate Dean; esteemed faculty members; honored guests, ladies and gentlemen: Good afternoon. It is indeed an honor and great pleasure to be here at Tsinghua University today. I express my profound gratitude for this unique opportunity to address you today and for the warm hospitality you have extended to me and my delegation. I am humbled by your invitation to speak at this prestigious university, which boasts so many distinguished graduates. There is much talk of China and Africa in the news: A recent online search found more than 51 million articles! Much of this news is about current Chinese investment in Africa – solar power in Malawi, nuclear power in South Africa, oil production in South Sudan – and the discussion centers largely around Chinese investments and business ventures in African countries. In 2012, one-quarter of Africa’s merchandise ","displayconttype":"Speeches and Transcripts","originating_unit":"Africa, AFR","originating_unit_exact":"Africa, AFR","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Speeches and Transcripts","node_id":"a929d33352c3a05224ead02d5551ad01c57873f7","wn_title":"Lessons for Africa from China’s Growth","wn_desc":" Respected Professor QIAN Yingyi, Dean of the Tsinghua School of Economics and Management (SEM); and respected Professor BAI Chong-En, Associate Dean; esteemed faculty members; honored guests, ladies and gentlemen: Good afternoon. It is indeed an honor and great pleasure to be here at Tsinghua University today. I express my profound gratitude for this unique opportunity to address you today and for the warm hospitality you have extended to me and my delegation. I am humbled by your invitation to speak at this prestigious university, which boasts so many distinguished graduates. There is much talk of China and Africa in the news: A recent online search found more than 51 million articles! Much of this news is about current Chinese investment in Africa – solar power in Malawi, nuclear power in South Africa, oil production in South Sudan – and the discussion centers largely around Chinese investments and business ventures in African countries. In 2012, one-quarter of Africa’s merchandise exports came to China. Trade between China and Africa began long before this current phase of investments and the range of views that have accompanied it.  For example, Chinese coins from the Song dynasty, more than one thousand years ago (960-1279), have been recovered in Tanzania. There were Chinese ships sailing on the coast of Kenya in the 1400s, leaving Chinese porcelain behind and taking giraffes back to China with them. We in Africa enjoy our long, rich history with China, as China has accompanied Africa on the road to economic development since we achieved our independence more than fifty years ago.  China has taught us that history matters – as does a firm commitment to growth and development. As an African looking at China, today I want to go beyond the story of trade between Africa and China. The benefits of China’s investments for African development run far deeper than a mere mercantile relationship based on extraction and export of basic commodities. As I undertake this, my third visit to China, I am keen to draw on China’s experience and success and identify ways in which the World Bank can work with our African client countries to achieve a sustained trajectory of economic growth – growth that is inclusive and built on poverty reduction and shared prosperity.  In this current period of falling commodity prices, I am particularly keen to look to China’s experience for lessons to take forward. What Africa Can Learn from Chinese Growth – It is Possible to Change the Course of History – China Did So In 1978, China was among the poorest countries in the world.  Since then, China’s real per capita income has grown, on average, by more than 8 percent each year – this is indeed a striking level of growth. In contrast, per capita income in Africa actually fell consistently between 1976 and the mid-1990s. Since then, Africa has experienced consistent growth, but that growth has been very heterogeneous across countries, with countries rich in natural resources growing much faster than those without. What can Africa learn from Chinese growth? Africa has seen a remarkable turnaround in economic growth beginning in the mid-1990s.  Real GDP growth has averaged 4.5 percent a year during 1995-2013, with nearly one-fifth of countries in the region growing at an average rate of 7 percent or better.  The region’s growth has been comparable to that of developing countries outside the region, and has been outperformed only by East Asia and the Pacific region.  Overall, the size of the regional economy has more than doubled (in real terms) during this period.  The results of recent rebasing of the national accounts— the size of Ghana’s economy was 60 percent larger than previously thought and Nigeria’s was around 80 percent larger—suggest that the increase in Africa’s economic size during this period is likely to be even larger than previously thought.  Prospects are for Africa to grow by 4.6% in 2015, and reach a growth level of 5.1% in 2017, lifted by infrastructure investment, increased agricultural output, and an expanding services sector.  On the external front, African growth has been closely linked to the commodities boom – growth in China and the emergence of China as one of Africa’s main trade and investment partners – as well as the surge in cross-border financial flows. On the internal front, improved and sustained macroeconomic management in the Region has resulted in lower inflation, better fiscal outcomes, and lower growth volatility.  Crisis volatility was sharply reduced as the Region became less susceptible to macroeconomic disasters. The way in which the African continent weathered the 2008 financial crisis is a good indication of African Economic Resilience.  In addition, the regulatory environment has improved, as reflected in our rising Doing Business indicators. All that said, there are some caveats to this African Growth:  it has been based on factor accumulation, particularly in capital-intensive sectors; there has been a very low poverty-to-growth elasticity; there has been low creation of quality jobs, leading to insufficient income growth; growth has been more rapid in capital-intensive/low-productivity sectors; and per capita growth has been lower than in other developing countries due to the high fertility rate.  This factor accumulation model in Africa will face limitations as we now move into a period of lower commodity prices. I will focus today on a central lesson – China’s focus on boosting productivity – and the associated emphasis on rapid and large investments in human and physical capital, high savings rates, and an overarching ability to consistently drive toward long-term objectives.  I believe that African countries can draw important lessons from the ways in which China achieved this steady trajectory of growth.     Productivity Africa’s steady growth in real GDP – averaging 5% per year over the past decade, was possible thanks to strong underlying fundamentals in terms of inflation, fiscal deficits and financial sustainability.  It resulted from factor accumulation as investments in extractives and other commodities helped to grow the labor force.  As positive as such growth is, in fact it equates to 2.1% per capita real growth:  it has not been accompanied by an increase in productivity, and has been further limited by high rates of population growth. The bottom line is this: African economies must address the challenges of productivity in order to achieve sustained, shared growth and reduce overall poverty.   China has enjoyed extremely high increases in productivity over the last several decades. Early on, this productivity growth was driven by the agricultural sector, followed by productivity growth in township and village enterprises in the 1980s and 1990s, and then by privately-owned firms and a restructured state-owned sector into the 2000s. As I just mentioned, Africa’s recent growth has been highly dependent on exports of raw materials and commodities. Much of the population remains working in agriculture, and while many have shifted to working in services, much of that growth in services is restricted to low-productivity activities such as informal sector trade and production. However, to cite other examples, there is Uganda’s growth in manufacturing; and Rwanda has moved into the services sector. Some of the growth in African manufacturing has been supported by China, such as the Huajian shoe factory in Ethiopia, which opened in 2012 and turned a profit in its first year of operation. Manufacturing is not the only way to move up the value chain from exports of extractives. There is also the possibility of producing higher-value agricultural products, such as cassava flour in Nigeria, cut flowers in Kenya, or chocolate in Madagascar. These shifts may deliver some of the agricultural productivity gains that Africa needs. Some African countries have demonstrated success in diversifying exports: Rwanda has expanded exports of vegetables and beverages, while Ethiopia has expanded leather exports as well as horticulture. All three of these strategies – shifting into manufacturing, moving up the agriculture value chain, and diversifying across exports – can help Africa’s economies increase both productivity and resilience to global trends. Pro-Poor Growth Beyond growth, productivity increases in China have been dramatically pro-poor.   Between 1981 and 2004, China went from more than two-thirds of the population living on less than $1 a day, to fewer than one person in ten living in poverty. A recent analysis of the impact of growth on poverty, comparing China, India, and Brazil, found that China’s growth reduced poverty at a rate 50% higher than that of Brazil, and even higher relative to poverty reduction in India. This has been especially true for growth in agriculture, where growth has had four times as great an impact on reducing poverty than growth in manufacturing or services. In contrast, growth in Africa has been accompanied by much slower poverty reduction. In the developing world broadly, a 10% increase in national income translates into a 20% reduction in poverty. In Africa, the same increase in income translates into only a 7% reduction in poverty. A recent study across six African countries found that growth in agriculture reduced poverty by between 50 and 127% more than growth in other sectors.[i] And because more than three-quarters of Africa’s poor are employed in the agricultural sector, productivity improvements in agriculture – moving up the value chain – may hold exceptional promise for reducing poverty. A significant amount of China’s productivity growth has been driven by market reforms. While African nations enacted major market reforms throughout the 1980s, 1990s, and 2000s, the increases in productivity have not been at the levels that were hoped for.  So we must ask:  what is Africa missing? There has been a resurgence in the debate over the factors and prerequisites to structural transformation in Africa. Overall, economic transformation characterized by a reallocation of resources from low-productivity activities into modern, high-productivity sectors such as manufacturing has been lacking from Africa’s boom.  This has fueled a debate on whether sustainable growth in fact requires a shift in favor of manufacturing (as advocated by McMillan, Rodrik, Verduzco-Gallo); or moving up the quality ladder in sectors where countries can exploit and build on their current patterns of comparative advantage and sustain growth (as espoused by Hausmann and Hidalgo). As another example, India’s growth pattern suggests that a shift into high-productivity services, bypassing manufacturing, represents yet another path to sustainable growth (as noted by Ghani, Goswami and Kharas). Modern services such as software development, and manufactured products, enable innovative and technology-savvy countries to leverage services as an important driver of growth.  Although there is clearly no “one size fits all” approach, cross-country analysis points to a set of “horizontalist” (i.e., neutral across sectors) factors which have contributed to diversification: Improving infrastructure and trade networks; investing in human capital; encouraging financial deepening; reducing barriers to entry for new products; and R&D. Human Capital:  Education Beyond reforms that increased productivity, China has nurtured a population with high levels of human capital. The average years of schooling for Chinese adults (ages 15 and up) rose from 1.5 in 1950 to more than 7.5 in 2010, a five-fold increase! Clearly human capital has been one of many enabling factors in China’s meteoric growth. When we look at human capital in Africa by the simple metric of years of schooling during the same period, average years of schooling rose from 1.3 to 5.2, a four-fold increase. The really stark differences arise, however, when we examine the quality of schooling. While there are no direct comparisons of learning outcomes in various regions of China versus individual countries in Africa, there is a very real disparity between learning outcomes – with profound related impacts -- in Africa and China. Africa needs a skilled labor force in order to experience growth like China’s. After decades of limited engagement in post-secondary education, the World Bank Group and other partners are directing a long-overdue focus on higher education and, most importantly, on the content of university studies and the skills students need to enter the job market and contribute to Africa’s growth and development – notably, science and technology. Skilled graduates are crucial for Africa to move up the value chain and achieve critical productivity increases. Here – again – there is room to learn from China, where more than 40 percent of all tertiary degrees are awarded in science, technology, engineering, and mathematics (the so-called “STEM” fields). In contrast, the number of African university graduates students in STEM fields is closer to 22 percent. Africa needs scientists and engineers to improve the productivity of its crops and to build the infrastructure required by Africa’s booming cities. The quality of education and an emphasis on STEM will be essential to African productivity and income growth. This new direction has been recognized by the leaders who convened last March in Kigali, Rwanda, at a forum on Higher Education for Science, Technology, and Innovation. At the conclusion of the forum we committed to double the share of students graduating from African universities with degrees in science, mathematics, and technology by 2025, bringing Africa more in the range of China in this regard. China is already working with the Africa Region on this ambitious agenda and we welcome further cooperation. At the same time, Africa needs to get more students into tertiary education so that they have the option of studying science and technology. University (or other post-secondary) enrollment is under ten percent in Sub-Saharan Africa, the lowest of any region in the world. Some of the best evidence on improving lower levels of education comes from China. The World Bank recently reviewed hundreds of studies on improving primary education in middle- and low-income countries, and twenty-five studies from China informed recommendations for improving education in Africa and beyond, especially on effectively incorporating technology into schools. While I began this discussion with an emphasis on higher education, secondary (and even basic, quality primary) education remain essential to boosting productivity, particularly in the informal sector. Poor learning outcomes in turn impact the productive sector, in terms of shortages in qualified labor to meet the needs of the growing manufacturing sector, and to increase productivity in services sectors as well.  Another critical area for African human capital development is technical and vocational education and training – so-called “TVET”.  China’s success in developing the skills needed to adopt technology has created the conditions to attract investment in manufacturing.  Here again, Africa has much to learn from China’s experience in order to adopt new technologies and thereby create jobs.    Human Capital:  Health Another component of human capital is health. Allow me, first, to acknowledge China’s generous support to the response to the recent Ebola outbreak in West Africa. Beyond this crisis, we see the fundamental importance of improving basic health systems to increase life expectancy, which remains low in most African countries, and create viable health systems. China has demonstrated, for decades, a commitment to broadening access to health, beginning with the Cooperative Medical System and the so-called “barefoot doctors” in the 1950s. These programs offer valuable lessons in how to provide health care to rural areas that are suffering from inadequate health services.  It is clear that without a healthy population, there can be no hope for sustained economic growth.  African countries have recently adopted creative solutions to increase access to and quality of health care, including so-called “results-based financing”, whereby health centers receive resources per service rendered rather than a flat budget.  Evidence from Zimbabwe, Zambia, Rwanda, Burundi, and the Democratic Republic of the Congo suggests that such financing increases accessing of pre-natal care, institutional childbirths, and post-natal care visits. Evidence from Nigeria and Rwanda shows that not only is coverage improving, but so is the quality of care provided by these centers. And what about Agriculture? There are differing views on the role of agriculture in African development.  As indicated earlier, there is a view advocating a rapid move from agriculture into manufacturing, with higher value-addition to move the economy towards higher productivity.  In the context of current African economies, there is a lot to be learned from the Chinese experience in agriculture.  The first phase of Chinese growth, as noted earlier, was driven by agriculture.  Africa is a continent with the basic elements for successful agriculture – abundant land and water resources. The cost of food products in Africa weighs heavily on the balance of payments. For example, the Democratic Republic of Congo imports more than $1.5 billion per year worth of food, which places pressure on the balance of payments and depletes foreign exchange reserves.  Low productivity and low supply of food products in Africa is having an impact on prices and related negative impacts on the poorest countries. As one example, in one African country, a kilo of tomatoes currently costs nearly $8! As such, any changes to improve agricultural productivity and reduce the costs of the consumption basket will have a positive impact on lowering food costs and reduce pressure on wages as well. There is, as well, a pro-poor element to agricultural growth. It is possible to move up the value chain (for example, cut flowers in Kenya) and increase technology adoption.  Furthermore, as urbanization increases, increased agricultural productivity will provide food supply for urban populations and thereby enhance labor productivity. In the current context, there is no contradiction in advocating for both increasing agricultural productivity and manufacturing.  The experience of some Latin American countries shows that agriculture can play a major role in economic growth (for example, soy and poultry industries in Brazil) while also pursuing manufacturing at the same time. This can contribute to more inclusive growth and poverty reduction – as we have seen the elasticity of agricultural growth for reducing poverty. Physical Capital China has also invested heavily in physical capital. About two-thirds of roads in China are paved (compared with one-third of paved roads and just 7 percent of roads paved in select African countries). In China, 89 out of every 100 people have cell phone subscriptions, whereas just half of people in Tanzania and even fewer in the Congo have mobile telephones. But where we see the starkest difference is in access to power. Power consumption per capita in China is more than twenty times higher than in Nigeria or Kenya. China’s rapid advancement in physical capital is not surprising given the levels of investment: An estimate from the early 2000s suggested that more than 45 percent of national income in China was invested in physical capital. There is debate among economists as to the return on this investment relative to productivity growth. At least some estimates put this investment in physical capital as contributing to 50 percent of China’s growth in the post-reform years. One of the crucial constraints to growth in Africa is the lack of physical capital. It’s very difficult to develop higher-value, higher-return manufactures or even agricultural goods without access to roads and power. Consider, then, that fewer than one in three Africans has access to electricity (and only one in seven in rural areas) – in contrast  with near universal electricity coverage in China. Furthermore, consumers in Sub-Saharan African countries face the highest connection charges of any other region. Beyond simple investments in infrastructure, Africa also needs to make essential improvements in the efficiency of trade (such as simplifying border clearance processes and harmonizing customs regulations.   Savings Much of the investment that has fueled China’s exceptional growth has been facilitated by strikingly high savings rates. The most recent data suggest savings rates of about 50 percent in China, while the savings rates in most African countries are well under half of that. Some of China’s high savings comes from the corporate sector: Enterprises have risen in profitability, and limited access to bank financing has motivated enterprises to save in order to finance their own investments. When we look back at China, we see that household savings rates have risen dramatically along with public savings. How relevant is this for Africa? African growth has been driven to a significant extent by commodities, the prices for which can fluctuate wildly as we are seeing right now.  Higher levels of savings are needed in Africa – at both the public and household levels – to sustain the needed level of investment and a smooth growth trajectory over the long term. Savings decisions of households reflect a combination of income level, inter-temporal and inter-generational decisions, and the level of uncertainty in a country. We expect African households will experience increasing levels of income and confidence, as reduced levels of uncertainty, resulting in higher levels of savings to plan for future generations – as has been the case in China.  This transition to a higher rate of savings will be critical to supporting needed levels of investment. The fertility transition in Africa – another important factor in sustained economic growth -- has been much slower than in other regions. Fertility rates in three-quarters of African countries remain at four children or higher. Access to family planning and maternal health services – as well as education for girls – typically results in improved economic opportunity for women and lower fertility. Similarly, lower fertility rates can afford greater economic opportunity to women and improved economic growth overall.  Some governments in Africa are seeking innovative ways to achieve lower overall fertility rates. In Niger, for example, a so-called “School of Husbands” is delivered by trusted, traditional community leaders. This education program highlights the benefits of family planning and reproductive health. The World Bank is working with governments across the Sahel (the belt across Africa from Senegal to Eritrea) to strengthen reproductive health and empower women to make their own fertility choices in its $200-million Demographics in the Sahel Project. Of course, falling fertility links not only to increased savings but also to improved human capital for women.  These two factors always move together, and neither of them can be achieved alone. There are complementarities that make productivity growth, investments in human capital, and physical capital investments crucial ingredients to the overall growth recipe. Set goals and stick with them I don’t need to remind this esteemed audience of the wisdom offered by one of your former leaders:  “While the prospects are bright, the road has twists and turns”.  Shocks and temporary setbacks should not divert us from our long-term goals of Africa’s development.  Although productivity increases may have been the principal driver of China’s growth over the last 35 years, that growth has come from a variety of sectors: first agriculture, then village enterprises, then private firms. It seems that whenever one set of productivity-enhancing reforms has been exhausted, the Chinese economy found a new way to reignite productivity growth. Over this period, there has been an ongoing focus on productivity, through a range of policy choices that propelled China towards the goal of sustained economic growth.  Success in achieving economic growth with increased productivity, employment, and poverty reduction, will be built on sound economic principles. African leaders must also remain pragmatic and develop their own home-grown solutions.  As Deng Xiaoping said, “it doesn’t matter whether the cat is black or white, as long as it catches the mouse”. African countries need to bring pragmatic solutions to newly evolving problems. We must respond quickly and nimbly – and adapt our modus operandi to changing conditions – while maintaining a long-term perspective.      Conclusion I am humbled by the opportunity to draw on your country’s vast and successful experience. African countries are not going to mimic China’s institutions, nor should they. Rather, we must create the conditions to define our own growth path, based on our history, our culture and our institutions.  Various models for structural transformation, as offered by different groups of academics, will need to be adapted to our unique circumstances and the conditions in subsets of African countries.   No single approach will be suitable for the entire continent.  Often the question is asked as to which economic model Africa should adopt.  I would answer: “the African Model”, or more precisely, “the African Models”. The importance of such self-reliance is well-expressed by one of your former leaders, who wisely noted “We hope for foreign aid, but cannot be dependent on it.  We depend on our own efforts, and on the creative powers of our entire people.” We look forward to incorporating principles behind China’s impressive growth into the strategies of African nations as they seek to build on their improved growth of the last two decades. I hope that, going forward, Africa can look to China not only as a trading partner, but as a growth mentor. In turn, we look forward to sharing the African experience back with China. I thank you again for this opportunity to address you today, and to visit your prestigious university.      ","master_date":"2015-01-13T12:16:00Z","master_date_srt":"2015-01-13T12:16:00Z","master_recent_date_srt":"2015-01-13T12:16:00Z","master_recent_date":"2015-01-13T12:16:00Z","masterregion_exact":"Africa","short_description":"Makhtar Diop, World Bank Vice President for the Africa Region at Tsinghua University School of Economics and Management, Beijing, China","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":" Respected Professor QIAN Yingyi, Dean of the Tsinghua School of Economics and Management (SEM); and respected Professor BAI Chong-En, Associate Dean; esteemed faculty members; honored guests, ladies and gentlemen: Good afternoon. It is indeed an honor and great pleasure to be here at Tsinghua University today. I express my profound gratitude for this unique opportunity to address you today and for the warm hospitality you have extended to me and my delegation. I am humbled by your invitation to speak at this prestigious university, which boasts so many distinguished graduates. There is much talk of China and Africa in the news: A recent online search found more than 51 million articles! Much of this news is about current Chinese investment in Africa – solar power in Malawi, nuclear power in South Africa, oil production in South Sudan – and the discussion centers largely around Chinese investments and business ventures in African countries. In 2012, one-quarter of Africa’s merchandise exports came to China. Trade between China and Africa began long before this current phase of investments and the range of views that have accompanied it.  For example, Chinese coins from the Song dynasty, more than one thousand years ago (960-1279), have been recovered in Tanzania. There were Chinese ships sailing on the coast of Kenya in the 1400s, leaving Chinese porcelain behind and taking giraffes back to China with them. We in Africa enjoy our long, rich history with China, as China has accompanied Africa on the road to economic development since we achieved our independence more than fifty years ago.  China has taught us that history matters – as does a firm commitment to growth and development. As an African looking at China, today I want to go beyond the story of trade between Africa and China. The benefits of China’s investments for African development run far deeper than a mere mercantile relationship based on extraction and export of basic commodities. As I undertake this, my third visit to China, I am keen to draw on China’s experience and success and identify ways in which the World Bank can work with our African client countries to achieve a sustained trajectory of economic growth – growth that is inclusive and built on poverty reduction and shared prosperity.  In this current period of falling commodity prices, I am particularly keen to look to China’s experience for lessons to take forward. What Africa Can Learn from Chinese Growth – It is Possible to Change the Course of History – China Did So In 1978, China was among the poorest countries in the world.  Since then, China’s real per capita income has grown, on average, by more than 8 percent each year – this is indeed a striking level of growth. In contrast, per capita income in Africa actually fell consistently between 1976 and the mid-1990s. Since then, Africa has experienced consistent growth, but that growth has been very heterogeneous across countries, with countries rich in natural resources growing much faster than those without. What can Africa learn from Chinese growth? Africa has seen a remarkable turnaround in economic growth beginning in the mid-1990s.  Real GDP growth has averaged 4.5 percent a year during 1995-2013, with nearly one-fifth of countries in the region growing at an average rate of 7 percent or better.  The region’s growth has been comparable to that of developing countries outside the region, and has been outperformed only by East Asia and the Pacific region.  Overall, the size of the regional economy has more than doubled (in real terms) during this period.  The results of recent rebasing of the national accounts— the size of Ghana’s economy was 60 percent larger than previously thought and Nigeria’s was around 80 percent larger—suggest that the increase in Africa’s economic size during this period is likely to be even larger than previously thought.  Prospects are for Africa to grow by 4.6% in 2015, and reach a growth level of 5.1% in 2017, lifted by infrastructure investment, increased agricultural output, and an expanding services sector.  On the external front, African growth has been closely linked to the commodities boom – growth in China and the emergence of China as one of Africa’s main trade and investment partners – as well as the surge in cross-border financial flows. On the internal front, improved and sustained macroeconomic management in the Region has resulted in lower inflation, better fiscal outcomes, and lower growth volatility.  Crisis volatility was sharply reduced as the Region became less susceptible to macroeconomic disasters. The way in which the African continent weathered the 2008 financial crisis is a good indication of African Economic Resilience.  In addition, the regulatory environment has improved, as reflected in our rising Doing Business indicators. All that said, there are some caveats to this African Growth:  it has been based on factor accumulation, particularly in capital-intensive sectors; there has been a very low poverty-to-growth elasticity; there has been low creation of quality jobs, leading to insufficient income growth; growth has been more rapid in capital-intensive/low-productivity sectors; and per capita growth has been lower than in other developing countries due to the high fertility rate.  This factor accumulation model in Africa will face limitations as we now move into a period of lower commodity prices. I will focus today on a central lesson – China’s focus on boosting productivity – and the associated emphasis on rapid and large investments in human and physical capital, high savings rates, and an overarching ability to consistently drive toward long-term objectives.  I believe that African countries can draw important lessons from the ways in which China achieved this steady trajectory of growth.     Productivity Africa’s steady growth in real GDP – averaging 5% per year over the past decade, was possible thanks to strong underlying fundamentals in terms of inflation, fiscal deficits and financial sustainability.  It resulted from factor accumulation as investments in extractives and other commodities helped to grow the labor force.  As positive as such growth is, in fact it equates to 2.1% per capita real growth:  it has not been accompanied by an increase in productivity, and has been further limited by high rates of population growth. The bottom line is this: African economies must address the challenges of productivity in order to achieve sustained, shared growth and reduce overall poverty.   China has enjoyed extremely high increases in productivity over the last several decades. Early on, this productivity growth was driven by the agricultural sector, followed by productivity growth in township and village enterprises in the 1980s and 1990s, and then by privately-owned firms and a restructured state-owned sector into the 2000s. As I just mentioned, Africa’s recent growth has been highly dependent on exports of raw materials and commodities. Much of the population remains working in agriculture, and while many have shifted to working in services, much of that growth in services is restricted to low-productivity activities such as informal sector trade and production. However, to cite other examples, there is Uganda’s growth in manufacturing; and Rwanda has moved into the services sector. Some of the growth in African manufacturing has been supported by China, such as the Huajian shoe factory in Ethiopia, which opened in 2012 and turned a profit in its first year of operation. Manufacturing is not the only way to move up the value chain from exports of extractives. There is also the possibility of producing higher-value agricultural products, such as cassava flour in Nigeria, cut flowers in Kenya, or chocolate in Madagascar. These shifts may deliver some of the agricultural productivity gains that Africa needs. Some African countries have demonstrated success in diversifying exports: Rwanda has expanded exports of vegetables and beverages, while Ethiopia has expanded leather exports as well as horticulture. All three of these strategies – shifting into manufacturing, moving up the agriculture value chain, and diversifying across exports – can help Africa’s economies increase both productivity and resilience to global trends. Pro-Poor Growth Beyond growth, productivity increases in China have been dramatically pro-poor.   Between 1981 and 2004, China went from more than two-thirds of the population living on less than $1 a day, to fewer than one person in ten living in poverty. A recent analysis of the impact of growth on poverty, comparing China, India, and Brazil, found that China’s growth reduced poverty at a rate 50% higher than that of Brazil, and even higher relative to poverty reduction in India. This has been especially true for growth in agriculture, where growth has had four times as great an impact on reducing poverty than growth in manufacturing or services. In contrast, growth in Africa has been accompanied by much slower poverty reduction. In the developing world broadly, a 10% increase in national income translates into a 20% reduction in poverty. In Africa, the same increase in income translates into only a 7% reduction in poverty. A recent study across six African countries found that growth in agriculture reduced poverty by between 50 and 127% more than growth in other sectors.[i] And because more than three-quarters of Africa’s poor are employed in the agricultural sector, productivity improvements in agriculture – moving up the value chain – may hold exceptional promise for reducing poverty. A significant amount of China’s productivity growth has been driven by market reforms. While African nations enacted major market reforms throughout the 1980s, 1990s, and 2000s, the increases in productivity have not been at the levels that were hoped for.  So we must ask:  what is Africa missing? There has been a resurgence in the debate over the factors and prerequisites to structural transformation in Africa. Overall, economic transformation characterized by a reallocation of resources from low-productivity activities into modern, high-productivity sectors such as manufacturing has been lacking from Africa’s boom.  This has fueled a debate on whether sustainable growth in fact requires a shift in favor of manufacturing (as advocated by McMillan, Rodrik, Verduzco-Gallo); or moving up the quality ladder in sectors where countries can exploit and build on their current patterns of comparative advantage and sustain growth (as espoused by Hausmann and Hidalgo). As another example, India’s growth pattern suggests that a shift into high-productivity services, bypassing manufacturing, represents yet another path to sustainable growth (as noted by Ghani, Goswami and Kharas). Modern services such as software development, and manufactured products, enable innovative and technology-savvy countries to leverage services as an important driver of growth.  Although there is clearly no “one size fits all” approach, cross-country analysis points to a set of “horizontalist” (i.e., neutral across sectors) factors which have contributed to diversification: Improving infrastructure and trade networks; investing in human capital; encouraging financial deepening; reducing barriers to entry for new products; and R&D. Human Capital:  Education Beyond reforms that increased productivity, China has nurtured a population with high levels of human capital. The average years of schooling for Chinese adults (ages 15 and up) rose from 1.5 in 1950 to more than 7.5 in 2010, a five-fold increase! Clearly human capital has been one of many enabling factors in China’s meteoric growth. When we look at human capital in Africa by the simple metric of years of schooling during the same period, average years of schooling rose from 1.3 to 5.2, a four-fold increase. The really stark differences arise, however, when we examine the quality of schooling. While there are no direct comparisons of learning outcomes in various regions of China versus individual countries in Africa, there is a very real disparity between learning outcomes – with profound related impacts -- in Africa and China. Africa needs a skilled labor force in order to experience growth like China’s. After decades of limited engagement in post-secondary education, the World Bank Group and other partners are directing a long-overdue focus on higher education and, most importantly, on the content of university studies and the skills students need to enter the job market and contribute to Africa’s growth and development – notably, science and technology. Skilled graduates are crucial for Africa to move up the value chain and achieve critical productivity increases. Here – again – there is room to learn from China, where more than 40 percent of all tertiary degrees are awarded in science, technology, engineering, and mathematics (the so-called “STEM” fields). In contrast, the number of African university graduates students in STEM fields is closer to 22 percent. Africa needs scientists and engineers to improve the productivity of its crops and to build the infrastructure required by Africa’s booming cities. The quality of education and an emphasis on STEM will be essential to African productivity and income growth. This new direction has been recognized by the leaders who convened last March in Kigali, Rwanda, at a forum on Higher Education for Science, Technology, and Innovation. At the conclusion of the forum we committed to double the share of students graduating from African universities with degrees in science, mathematics, and technology by 2025, bringing Africa more in the range of China in this regard. China is already working with the Africa Region on this ambitious agenda and we welcome further cooperation. At the same time, Africa needs to get more students into tertiary education so that they have the option of studying science and technology. University (or other post-secondary) enrollment is under ten percent in Sub-Saharan Africa, the lowest of any region in the world. Some of the best evidence on improving lower levels of education comes from China. The World Bank recently reviewed hundreds of studies on improving primary education in middle- and low-income countries, and twenty-five studies from China informed recommendations for improving education in Africa and beyond, especially on effectively incorporating technology into schools. While I began this discussion with an emphasis on higher education, secondary (and even basic, quality primary) education remain essential to boosting productivity, particularly in the informal sector. Poor learning outcomes in turn impact the productive sector, in terms of shortages in qualified labor to meet the needs of the growing manufacturing sector, and to increase productivity in services sectors as well.  Another critical area for African human capital development is technical and vocational education and training – so-called “TVET”.  China’s success in developing the skills needed to adopt technology has created the conditions to attract investment in manufacturing.  Here again, Africa has much to learn from China’s experience in order to adopt new technologies and thereby create jobs.    Human Capital:  Health Another component of human capital is health. Allow me, first, to acknowledge China’s generous support to the response to the recent Ebola outbreak in West Africa. Beyond this crisis, we see the fundamental importance of improving basic health systems to increase life expectancy, which remains low in most African countries, and create viable health systems. China has demonstrated, for decades, a commitment to broadening access to health, beginning with the Cooperative Medical System and the so-called “barefoot doctors” in the 1950s. These programs offer valuable lessons in how to provide health care to rural areas that are suffering from inadequate health services.  It is clear that without a healthy population, there can be no hope for sustained economic growth.  African countries have recently adopted creative solutions to increase access to and quality of health care, including so-called “results-based financing”, whereby health centers receive resources per service rendered rather than a flat budget.  Evidence from Zimbabwe, Zambia, Rwanda, Burundi, and the Democratic Republic of the Congo suggests that such financing increases accessing of pre-natal care, institutional childbirths, and post-natal care visits. Evidence from Nigeria and Rwanda shows that not only is coverage improving, but so is the quality of care provided by these centers. And what about Agriculture? There are differing views on the role of agriculture in African development.  As indicated earlier, there is a view advocating a rapid move from agriculture into manufacturing, with higher value-addition to move the economy towards higher productivity.  In the context of current African economies, there is a lot to be learned from the Chinese experience in agriculture.  The first phase of Chinese growth, as noted earlier, was driven by agriculture.  Africa is a continent with the basic elements for successful agriculture – abundant land and water resources. The cost of food products in Africa weighs heavily on the balance of payments. For example, the Democratic Republic of Congo imports more than $1.5 billion per year worth of food, which places pressure on the balance of payments and depletes foreign exchange reserves.  Low productivity and low supply of food products in Africa is having an impact on prices and related negative impacts on the poorest countries. As one example, in one African country, a kilo of tomatoes currently costs nearly $8! As such, any changes to improve agricultural productivity and reduce the costs of the consumption basket will have a positive impact on lowering food costs and reduce pressure on wages as well. There is, as well, a pro-poor element to agricultural growth. It is possible to move up the value chain (for example, cut flowers in Kenya) and increase technology adoption.  Furthermore, as urbanization increases, increased agricultural productivity will provide food supply for urban populations and thereby enhance labor productivity. In the current context, there is no contradiction in advocating for both increasing agricultural productivity and manufacturing.  The experience of some Latin American countries shows that agriculture can play a major role in economic growth (for example, soy and poultry industries in Brazil) while also pursuing manufacturing at the same time. This can contribute to more inclusive growth and poverty reduction – as we have seen the elasticity of agricultural growth for reducing poverty. Physical Capital China has also invested heavily in physical capital. About two-thirds of roads in China are paved (compared with one-third of paved roads and just 7 percent of roads paved in select African countries). In China, 89 out of every 100 people have cell phone subscriptions, whereas just half of people in Tanzania and even fewer in the Congo have mobile telephones. But where we see the starkest difference is in access to power. Power consumption per capita in China is more than twenty times higher than in Nigeria or Kenya. China’s rapid advancement in physical capital is not surprising given the levels of investment: An estimate from the early 2000s suggested that more than 45 percent of national income in China was invested in physical capital. There is debate among economists as to the return on this investment relative to productivity growth. At least some estimates put this investment in physical capital as contributing to 50 percent of China’s growth in the post-reform years. One of the crucial constraints to growth in Africa is the lack of physical capital. It’s very difficult to develop higher-value, higher-return manufactures or even agricultural goods without access to roads and power. Consider, then, that fewer than one in three Africans has access to electricity (and only one in seven in rural areas) – in contrast  with near universal electricity coverage in China. Furthermore, consumers in Sub-Saharan African countries face the highest connection charges of any other region. Beyond simple investments in infrastructure, Africa also needs to make essential improvements in the efficiency of trade (such as simplifying border clearance processes and harmonizing customs regulations.   Savings Much of the investment that has fueled China’s exceptional growth has been facilitated by strikingly high savings rates. The most recent data suggest savings rates of about 50 percent in China, while the savings rates in most African countries are well under half of that. Some of China’s high savings comes from the corporate sector: Enterprises have risen in profitability, and limited access to bank financing has motivated enterprises to save in order to finance their own investments. When we look back at China, we see that household savings rates have risen dramatically along with public savings. How relevant is this for Africa? African growth has been driven to a significant extent by commodities, the prices for which can fluctuate wildly as we are seeing right now.  Higher levels of savings are needed in Africa – at both the public and household levels – to sustain the needed level of investment and a smooth growth trajectory over the long term. Savings decisions of households reflect a combination of income level, inter-temporal and inter-generational decisions, and the level of uncertainty in a country. We expect African households will experience increasing levels of income and confidence, as reduced levels of uncertainty, resulting in higher levels of savings to plan for future generations – as has been the case in China.  This transition to a higher rate of savings will be critical to supporting needed levels of investment. The fertility transition in Africa – another important factor in sustained economic growth -- has been much slower than in other regions. Fertility rates in three-quarters of African countries remain at four children or higher. Access to family planning and maternal health services – as well as education for girls – typically results in improved economic opportunity for women and lower fertility. Similarly, lower fertility rates can afford greater economic opportunity to women and improved economic growth overall.  Some governments in Africa are seeking innovative ways to achieve lower overall fertility rates. In Niger, for example, a so-called “School of Husbands” is delivered by trusted, traditional community leaders. This education program highlights the benefits of family planning and reproductive health. The World Bank is working with governments across the Sahel (the belt across Africa from Senegal to Eritrea) to strengthen reproductive health and empower women to make their own fertility choices in its $200-million Demographics in the Sahel Project. Of course, falling fertility links not only to increased savings but also to improved human capital for women.  These two factors always move together, and neither of them can be achieved alone. There are complementarities that make productivity growth, investments in human capital, and physical capital investments crucial ingredients to the overall growth recipe. Set goals and stick with them I don’t need to remind this esteemed audience of the wisdom offered by one of your former leaders:  “While the prospects are bright, the road has twists and turns”.  Shocks and temporary setbacks should not divert us from our long-term goals of Africa’s development.  Although productivity increases may have been the principal driver of China’s growth over the last 35 years, that growth has come from a variety of sectors: first agriculture, then village enterprises, then private firms. It seems that whenever one set of productivity-enhancing reforms has been exhausted, the Chinese economy found a new way to reignite productivity growth. Over this period, there has been an ongoing focus on productivity, through a range of policy choices that propelled China towards the goal of sustained economic growth.  Success in achieving economic growth with increased productivity, employment, and poverty reduction, will be built on sound economic principles. African leaders must also remain pragmatic and develop their own home-grown solutions.  As Deng Xiaoping said, “it doesn’t matter whether the cat is black or white, as long as it catches the mouse”. African countries need to bring pragmatic solutions to newly evolving problems. We must respond quickly and nimbly – and adapt our modus operandi to changing conditions – while maintaining a long-term perspective.      Conclusion I am humbled by the opportunity to draw on your country’s vast and successful experience. African countries are not going to mimic China’s institutions, nor should they. Rather, we must create the conditions to define our own growth path, based on our history, our culture and our institutions.  Various models for structural transformation, as offered by different groups of academics, will need to be adapted to our unique circumstances and the conditions in subsets of African countries.   No single approach will be suitable for the entire continent.  Often the question is asked as to which economic model Africa should adopt.  I would answer: “the African Model”, or more precisely, “the African Models”. The importance of such self-reliance is well-expressed by one of your former leaders, who wisely noted “We hope for foreign aid, but cannot be dependent on it.  We depend on our own efforts, and on the creative powers of our entire people.” We look forward to incorporating principles behind China’s impressive growth into the strategies of African nations as they seek to build on their improved growth of the last two decades. I hope that, going forward, Africa can look to China not only as a trading partner, but as a growth mentor. In turn, we look forward to sharing the African experience back with China. I thank you again for this opportunity to address you today, and to visit your prestigious university.      ","date":"2015-01-13T12:16:00Z","contenttype":"Speeches and Transcripts"},"_60212070992af659b5f5624e3af5c80283d39549":{"id":"60212070992af659b5f5624e3af5c80283d39549","title":"Speech by World Bank Group President Jim Yong Kim: “Tackling the Most Difficult Problems: Infrastructure, Ebola and Climate Change”","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2014/10/10/speech-world-bank-group-president-jim-yong-kim-tackling-difficult-problems-infrastructure-ebola-climate-change","descr":"Speech by World Bank Group President Jim Yong Kim: “Tackling the Most Difficult Problems: Infrastructure, Ebola and Climate Change”","keywd":"events:annual meetings,subject:climate change,subject:health,People:Jim Yong Kim,subject:infrastructure and growth","lang":{"0":{"cdata!":"English"}},"topic":"Climate Change,Health,Infrastructure And Growth","cqpath":"/content/wb-home/en/news/speech/2014/10/10/speech-world-bank-group-president-jim-yong-kim-tackling-difficult-problems-infrastructure-ebola-climate-change","wcmsource":"cq5","content":" Chairman Pruaitch, Madame Lagarde, Governors, my friends Jim and Elaine Wolfensohn, Mrs. Robert McNamara, partners, and friends:  It is wonderful to see you again. First, I’d like to congratulate the winners of the Nobel Peace Prize, Malala Yousafzai and Kailash Satyarthi. Just one year ago, Malala and I sat together on a stage at the World Bank. She is an inspiration to all of us, and gives us hope for the new generation – especially the new generation of girls. When we were together last year, I spoke at length about the World Bank Group’s plans for its most significant reorganization in nearly two decades. Our goal was to ensure that we were fit for the purpose of meeting our twin goals: ending extreme poverty by 2030, and boosting shared prosperity for the poorest 40 percent in developing countries. During the last year, our reorganization has been a monumental undertaking. The World Bank Group has more than 16,000 staff, and about 7,000 of them have been transferred or remapped to new jobs. We have offices in more than 100 countries. And we made loans and investments last year totaling more than $60 billion dollars. The reorganization was launched with a clear purpose: We needed to be the best in the world at collecting and sharing development knowledge for the benefit of all our clients. Starting in July, we set up 19 different communities of experts – groups of some of the best development professionals in the world on water, finance, education, and climate, among many others. Their job is to seek out the best solutions to the most difficult development problems, and to share those solutions with our clients in a way that will further our mission to end poverty and boost shared prosperity. At the same time, we knew that we needed to substantially increase our ability to provide financing, risk management products, and other financial services, to middle-income countries. Through the creative and intense work of our finance group, brilliantly led by Bertrand Badré, we have increased our annual lending capacity for these emerging economies, from $15 billion dollars to more than $25 billion per year. This flexibility will help us direct more resources to the areas that need them most – sub-Saharan Africa and South Asia, which is where most of the world’s poorest people live. Economic growth is the most powerful tool we have to end poverty, yet without infrastructure – electricity, water, and roads – growth will never take off. As I will explain, the world’s deficit of these building blocks for growth is substantial. Just think about the fact that sub-Saharan Africa generates as much power in a year as Spain. If we are to end poverty, we need to power Africa.    The World Bank Group’s financing for infrastructure reached $24 billion dollars in fiscal year 2014 – nearly 40 percent of our total commitments. But our loans and projects will fall far short of what the developing world needs. The infrastructure gap is simply enormous – an estimated $1 trillion to $1.5 trillion dollars more is needed each year. To fill this gap, we need to tap into the trillions of dollars held by institutional investors – most of which is sitting on the sidelines – and direct those assets into projects that will have great benefit for a range of developing countries.  Today, the developing world spends about $1 trillion dollars on infrastructure, and only a small share of those projects involve private actors. Overall, private investments and public-private partnerships in developing countries totaled $150 billion dollars in 2013, down from $186 billion dollars in 2012. So it will take the commitment of all of us to help low- and middle-income countries bridge the massive infrastructure divide. Yesterday, we announced the creation of the Global Infrastructure Facility, which is designed to attract financing for these states’ infrastructure needs. This platform, called the GIF, will bring together institutional investors, development banks, and public officials to tackle the infrastructure deficit in new and creative ways. Together, they will create a robust pipeline of infrastructure projects for emerging markets and poor countries.   While building infrastructure will help us promote growth in the long run, ending poverty by 2030 also requires us to be vigilant against threats to the growth of the global economy.  In a world where natural disasters, conflict, financial shocks and epidemics are becoming more frequent and destructive, we at the World Bank Group must do everything we can to become even more relevant. Indeed, we’ve been fully engaged lately in fighting two of these global threats: the Ebola epidemic and climate change. This is no accident. It exemplifies what we want to become – an indispensable partner for both low- and middle-income countries in their efforts to solve their most difficult challenges. Ebola and climate change have a few things in common. Most importantly, we are running out of time to find solutions to both. Also, until very recently, the plans to fight them were either non-existent or inadequate. And, inaction is literally killing people – one because of the rapid spread of a deadly virus, the other from the poisoning of the atmosphere and the oceans. And finally, perhaps most critically from our point of view, resolving these problems is essential to development, whether from the perspective of human suffering, economic growth, or public health. In our work on both Ebola and climate, we have not only been in the middle of pressing global concerns, we also have been working differently, and more effectively, at least partly because our reorganization and focus on innovation has made us more fit for purpose. For Ebola, the global response has been late, inadequate and slow. Recently, the international community has made positive strides in its response, led by the United States and the United Kingdom, as well as international institutions like the United Nations and the International Monetary Fund. Nonetheless, we still can do much more. Close to a year ago, just weeks after Typhoon Haiyan caused major destruction and loss of lives in the Philippines, 150 medical response teams – each with 25 to 30 people – had been deployed to the archipelago’s hardest-hit areas. But in Guinea, Liberia and Sierra Leone, the three West African countries hit hardest by the Ebola outbreak, just 30 medical response teams are on the ground, treating and caring for patients – even though we are now 11 months into this crisis. More health workers have been promised, but they’re arriving too slowly. The Ebola outbreak poses one of the most complex and difficult challenges that I’ve seen in all my years as an infectious disease physician. Because of the poverty in the three most affected countries, it exceeds the capacity of their emergency, health and fiscal resources. Faced with these conditions, we must guard against approaches that are based on aspirations for these countries and the poor that are too low to treat and contain the epidemic. Usually, the World Bank Group has worked in the medium- to long-term on development projects and helping clients build the systems necessary to promote economic growth, create jobs, educate children, and improve health. To combat Ebola, we needed to move to an emergency footing and quickly.   We looked across the entire Bank and brought the institution’s full firepower to bear against the virus. We’ve sent capital, shared knowledge, helped develop response strategies, and analyzed the potential economic impact.  In the three African countries, our teams for months have worked closely with the governments to identify priority actions, ensure disbursement of funds, and assist in organizing major shipments of supplies. From Washington, scores of staff from our Africa region; the health, nutrition and population global practice; development finance and development economics management units; and the International Finance Corporation, came together to work as one team. They have worked on contracts with the countries so they can quickly accept our grants; economic impact analyses; and longer-range planning to rebuild the countries’ health systems once the crisis is over. To smooth coordination, members of my office have worked out of the United Nations Ebola response headquarters. The stakes of this effort in human lives and economic growth are incredibly high and grow higher every day we delay in ramping up our response.  For this reason, I have spent a lot of time over the last two months working with Bank colleagues to stop the virus. I have been in frequent contact with Presidents Condé, Johnson Sirleaf, and Koroma to understand how the Bank can help them on the front lines. I have also reached out to leaders from all over Africa and donor nations, to relay the most important message: We must do all we can to stop Ebola, and we must act now because delay exponentially raises the human and economic cost of stopping the epidemic. So, once engaged, we’ve moved with creativity, speed and purpose. We innovated, using IDA’s Crisis Response Window as a source of funding – something that had never been done before in these circumstances. It took our teams nine days to work out multiple complicated negotiations with country officials in order to disburse $105 million dollars in emergency funds – a time frame unheard of in our institution. Working around the clock, our economists ran sophisticated modeling that, in only a few weeks, produced impact assessments from Ebola in the three countries and the region. Their assessment is grim: The economic impact of Ebola on West Africa could be as high as $32.6 billion dollars over the next two years. I’d like to thank the strong leadership of Sri Mulyani Indrawati, Makhtar Diop, Joachim von Amsberg, and, especially, Timothy Evans. Even as we focus intensely on the emergency response, we must also plan for the next epidemic, which could spread much more quickly, kill even more people, and potentially devastate the global economy. The world has an IMF to coordinate and work with central banks and ministries to respond to financial crises. When it comes to health emergencies, however, our institutional toolbox is empty: There’s no such center of knowledge and skill for response and coordination.    So, in the last week or two, our finance teams have proposed several solutions that would address the financial part of this problem, including a new pandemic emergency facility that could disburse money immediately to countries in the face of an outbreak. Such a device would pre-package a response, establishing contingent funding agreements with donors and receipt mechanisms for possible recipients. So when a global health emergency is declared, financial support would be readily available and flow quickly to support an immediate response. With the support of our shareholders, we would like to develop this proposal with our partners at the United Nations, the IMF and regional development banks.  Whatever form this instrument takes, having such a resource would force us to have concrete plans to tackle the next outbreak and may even provide an advance market signal for producers of vaccines and drugs.  What we’ve done on Ebola to date has been heavily informed by our focus over the last two years on climate change. Soon after I started at the World Bank, I asked my team a simple question: What’s the plan to fight climate change? The responses received from our staff and even from leaders in the climate change community were mostly tactical: new technologies here, some efficiencies there. While important, they were not equal to the challenge of keeping a global increase in temperature below 2 degrees Celsius. So, working with others, we developed our own strategy that we hoped could take us a long way toward achieving this objective. Our plan had five parts: Put a price on carbon; eliminate fossil fuel subsidies; build cleaner cities, increase climate-smart agricultural practices, and invest in renewable sources of energy. Getting something done on even one of these priorities required intense focus. In advance of the recent UN Climate Summit, I again asked my team some questions:  What is the smallest number of the most important things we can do for the summit, and what are they? I didn’t want them to focus on all the things we need to do; I wanted them to focus on a few essential things that we might be able to push forward. They told me the most important thing to do immediately was put a price on carbon. On its own, this step would not achieve our goal of staying below a 2-degree Celsius world; however, without it, limiting global emissions would take much longer. So we decided to mount a campaign: Set a goal of 50 countries and hundreds of companies and investors to agree to put a price on carbon, and then present the accord to heads of state at the UN summit. Our climate team, led by Rachel Kyte, which includes staff from both the Bank and IFC, assembled a detailed campaign plan. They reached out first to nearly every World Bank country office to enlist support for a carbon pricing agreement from governments and companies. We contacted the UN Secretary-General’s office, and worked closely with the Deputy Secretary-General and the special UN climate envoys in this effort. Together with private sector groups we built an extraordinary coalition. At the start of the campaign, we counted 22 countries that would support this goal. With lobbying, the number kept climbing. Less than a week before the deadline, China, the world’s largest emitter of carbon dioxide, agreed to support carbon pricing. It became the 54th country to endorse the statement. In the four days before the summit, 20 more countries signed on.  At the time of the announcement, 74 governments and more than 1,000 companies and investors had agreed to put a price on carbon. Together, the countries account for up to 54 percent of the world’s carbon emissions, 52 percent of the world’s GDP, and nearly 50 percent of the world’s population. Later today, Ministers, CEOs and the World Bank Climate Group will join me to turn this pledge into action. During all of our efforts on infrastructure, Ebola and climate change, teams from across the institution worked collaboratively and displayed an inspiring commitment to innovation. I’m so proud of them. Their efforts displayed creativity, knowledge, skill, intensity, passion and selflessness. Their sharing of ideas and best practices is precisely the culture we want to create at the World Bank Group. I’m sure that the fruits of their labors will save lives, promote economic growth, reduce poverty, and protect the planet for future generations. When I think of our teams’ breakthroughs on these three issues of global importance, and when I think of my talented colleagues, I see the future of the World Bank Group. Working with both the public and private sectors, we are trying to solve some of the most difficult problems in the world today, in a way that reflects what we know we can be when we are at our best – a truly one World Bank Group team. We must maintain this commitment because increasing global fragility and volatility will challenge us more and more every day. In our march to end extreme poverty – conflict, typhoons, floods, droughts, financial shocks and epidemics may, at times, slow us. But they will not stop us. The Bank will be aggressive and creative and apply large-scale solutions to help states manage, prepare for, recover from and conquer these risks, so they can grow and flourish. Ultimately, we will face these challenges together. We will end poverty by 2030. We will ensure that prosperity is shared among nations and all people. And we will protect the planet for future generations. Thank you very much.    ","content_1000":" Chairman Pruaitch, Madame Lagarde, Governors, my friends Jim and Elaine Wolfensohn, Mrs. Robert McNamara, partners, and friends:  It is wonderful to see you again. First, I’d like to congratulate the winners of the Nobel Peace Prize, Malala Yousafzai and Kailash Satyarthi. Just one year ago, Malala and I sat together on a stage at the World Bank. She is an inspiration to all of us, and gives us hope for the new generation – especially the new generation of girls. When we were together last year, I spoke at length about the World Bank Group’s plans for its most significant reorganization in nearly two decades. Our goal was to ensure that we were fit for the purpose of meeting our twin goals: ending extreme poverty by 2030, and boosting shared prosperity for the poorest 40 percent in developing countries. During the last year, our reorganization has been a monumental undertaking. The World Bank Group has more than 16,000 staff, and about 7,000 of them have been transferred or remap","displayconttype":"Speeches and Transcripts","originating_unit":"Office of the President, EXC","originating_unit_exact":"Office of the President, EXC","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","masterconttype":"Speeches and Transcripts","node_id":"60212070992af659b5f5624e3af5c80283d39549","wn_title":"Speech by World Bank Group President Jim Yong Kim: “Tackling the Most Difficult Problems: Infrastructure, Ebola and Climate Change”","wn_desc":" Chairman Pruaitch, Madame Lagarde, Governors, my friends Jim and Elaine Wolfensohn, Mrs. Robert McNamara, partners, and friends:  It is wonderful to see you again. First, I’d like to congratulate the winners of the Nobel Peace Prize, Malala Yousafzai and Kailash Satyarthi. Just one year ago, Malala and I sat together on a stage at the World Bank. She is an inspiration to all of us, and gives us hope for the new generation – especially the new generation of girls. When we were together last year, I spoke at length about the World Bank Group’s plans for its most significant reorganization in nearly two decades. Our goal was to ensure that we were fit for the purpose of meeting our twin goals: ending extreme poverty by 2030, and boosting shared prosperity for the poorest 40 percent in developing countries. During the last year, our reorganization has been a monumental undertaking. The World Bank Group has more than 16,000 staff, and about 7,000 of them have been transferred or remapped to new jobs. We have offices in more than 100 countries. And we made loans and investments last year totaling more than $60 billion dollars. The reorganization was launched with a clear purpose: We needed to be the best in the world at collecting and sharing development knowledge for the benefit of all our clients. Starting in July, we set up 19 different communities of experts – groups of some of the best development professionals in the world on water, finance, education, and climate, among many others. Their job is to seek out the best solutions to the most difficult development problems, and to share those solutions with our clients in a way that will further our mission to end poverty and boost shared prosperity. At the same time, we knew that we needed to substantially increase our ability to provide financing, risk management products, and other financial services, to middle-income countries. Through the creative and intense work of our finance group, brilliantly led by Bertrand Badré, we have increased our annual lending capacity for these emerging economies, from $15 billion dollars to more than $25 billion per year. This flexibility will help us direct more resources to the areas that need them most – sub-Saharan Africa and South Asia, which is where most of the world’s poorest people live. Economic growth is the most powerful tool we have to end poverty, yet without infrastructure – electricity, water, and roads – growth will never take off. As I will explain, the world’s deficit of these building blocks for growth is substantial. Just think about the fact that sub-Saharan Africa generates as much power in a year as Spain. If we are to end poverty, we need to power Africa.    The World Bank Group’s financing for infrastructure reached $24 billion dollars in fiscal year 2014 – nearly 40 percent of our total commitments. But our loans and projects will fall far short of what the developing world needs. The infrastructure gap is simply enormous – an estimated $1 trillion to $1.5 trillion dollars more is needed each year. To fill this gap, we need to tap into the trillions of dollars held by institutional investors – most of which is sitting on the sidelines – and direct those assets into projects that will have great benefit for a range of developing countries.  Today, the developing world spends about $1 trillion dollars on infrastructure, and only a small share of those projects involve private actors. Overall, private investments and public-private partnerships in developing countries totaled $150 billion dollars in 2013, down from $186 billion dollars in 2012. So it will take the commitment of all of us to help low- and middle-income countries bridge the massive infrastructure divide. Yesterday, we announced the creation of the Global Infrastructure Facility, which is designed to attract financing for these states’ infrastructure needs. This platform, called the GIF, will bring together institutional investors, development banks, and public officials to tackle the infrastructure deficit in new and creative ways. Together, they will create a robust pipeline of infrastructure projects for emerging markets and poor countries.   While building infrastructure will help us promote growth in the long run, ending poverty by 2030 also requires us to be vigilant against threats to the growth of the global economy.  In a world where natural disasters, conflict, financial shocks and epidemics are becoming more frequent and destructive, we at the World Bank Group must do everything we can to become even more relevant. Indeed, we’ve been fully engaged lately in fighting two of these global threats: the Ebola epidemic and climate change. This is no accident. It exemplifies what we want to become – an indispensable partner for both low- and middle-income countries in their efforts to solve their most difficult challenges. Ebola and climate change have a few things in common. Most importantly, we are running out of time to find solutions to both. Also, until very recently, the plans to fight them were either non-existent or inadequate. And, inaction is literally killing people – one because of the rapid spread of a deadly virus, the other from the poisoning of the atmosphere and the oceans. And finally, perhaps most critically from our point of view, resolving these problems is essential to development, whether from the perspective of human suffering, economic growth, or public health. In our work on both Ebola and climate, we have not only been in the middle of pressing global concerns, we also have been working differently, and more effectively, at least partly because our reorganization and focus on innovation has made us more fit for purpose. For Ebola, the global response has been late, inadequate and slow. Recently, the international community has made positive strides in its response, led by the United States and the United Kingdom, as well as international institutions like the United Nations and the International Monetary Fund. Nonetheless, we still can do much more. Close to a year ago, just weeks after Typhoon Haiyan caused major destruction and loss of lives in the Philippines, 150 medical response teams – each with 25 to 30 people – had been deployed to the archipelago’s hardest-hit areas. But in Guinea, Liberia and Sierra Leone, the three West African countries hit hardest by the Ebola outbreak, just 30 medical response teams are on the ground, treating and caring for patients – even though we are now 11 months into this crisis. More health workers have been promised, but they’re arriving too slowly. The Ebola outbreak poses one of the most complex and difficult challenges that I’ve seen in all my years as an infectious disease physician. Because of the poverty in the three most affected countries, it exceeds the capacity of their emergency, health and fiscal resources. Faced with these conditions, we must guard against approaches that are based on aspirations for these countries and the poor that are too low to treat and contain the epidemic. Usually, the World Bank Group has worked in the medium- to long-term on development projects and helping clients build the systems necessary to promote economic growth, create jobs, educate children, and improve health. To combat Ebola, we needed to move to an emergency footing and quickly.   We looked across the entire Bank and brought the institution’s full firepower to bear against the virus. We’ve sent capital, shared knowledge, helped develop response strategies, and analyzed the potential economic impact.  In the three African countries, our teams for months have worked closely with the governments to identify priority actions, ensure disbursement of funds, and assist in organizing major shipments of supplies. From Washington, scores of staff from our Africa region; the health, nutrition and population global practice; development finance and development economics management units; and the International Finance Corporation, came together to work as one team. They have worked on contracts with the countries so they can quickly accept our grants; economic impact analyses; and longer-range planning to rebuild the countries’ health systems once the crisis is over. To smooth coordination, members of my office have worked out of the United Nations Ebola response headquarters. The stakes of this effort in human lives and economic growth are incredibly high and grow higher every day we delay in ramping up our response.  For this reason, I have spent a lot of time over the last two months working with Bank colleagues to stop the virus. I have been in frequent contact with Presidents Condé, Johnson Sirleaf, and Koroma to understand how the Bank can help them on the front lines. I have also reached out to leaders from all over Africa and donor nations, to relay the most important message: We must do all we can to stop Ebola, and we must act now because delay exponentially raises the human and economic cost of stopping the epidemic. So, once engaged, we’ve moved with creativity, speed and purpose. We innovated, using IDA’s Crisis Response Window as a source of funding – something that had never been done before in these circumstances. It took our teams nine days to work out multiple complicated negotiations with country officials in order to disburse $105 million dollars in emergency funds – a time frame unheard of in our institution. Working around the clock, our economists ran sophisticated modeling that, in only a few weeks, produced impact assessments from Ebola in the three countries and the region. Their assessment is grim: The economic impact of Ebola on West Africa could be as high as $32.6 billion dollars over the next two years. I’d like to thank the strong leadership of Sri Mulyani Indrawati, Makhtar Diop, Joachim von Amsberg, and, especially, Timothy Evans. Even as we focus intensely on the emergency response, we must also plan for the next epidemic, which could spread much more quickly, kill even more people, and potentially devastate the global economy. The world has an IMF to coordinate and work with central banks and ministries to respond to financial crises. When it comes to health emergencies, however, our institutional toolbox is empty: There’s no such center of knowledge and skill for response and coordination.    So, in the last week or two, our finance teams have proposed several solutions that would address the financial part of this problem, including a new pandemic emergency facility that could disburse money immediately to countries in the face of an outbreak. Such a device would pre-package a response, establishing contingent funding agreements with donors and receipt mechanisms for possible recipients. So when a global health emergency is declared, financial support would be readily available and flow quickly to support an immediate response. With the support of our shareholders, we would like to develop this proposal with our partners at the United Nations, the IMF and regional development banks.  Whatever form this instrument takes, having such a resource would force us to have concrete plans to tackle the next outbreak and may even provide an advance market signal for producers of vaccines and drugs.  What we’ve done on Ebola to date has been heavily informed by our focus over the last two years on climate change. Soon after I started at the World Bank, I asked my team a simple question: What’s the plan to fight climate change? The responses received from our staff and even from leaders in the climate change community were mostly tactical: new technologies here, some efficiencies there. While important, they were not equal to the challenge of keeping a global increase in temperature below 2 degrees Celsius. So, working with others, we developed our own strategy that we hoped could take us a long way toward achieving this objective. Our plan had five parts: Put a price on carbon; eliminate fossil fuel subsidies; build cleaner cities, increase climate-smart agricultural practices, and invest in renewable sources of energy. Getting something done on even one of these priorities required intense focus. In advance of the recent UN Climate Summit, I again asked my team some questions:  What is the smallest number of the most important things we can do for the summit, and what are they? I didn’t want them to focus on all the things we need to do; I wanted them to focus on a few essential things that we might be able to push forward. They told me the most important thing to do immediately was put a price on carbon. On its own, this step would not achieve our goal of staying below a 2-degree Celsius world; however, without it, limiting global emissions would take much longer. So we decided to mount a campaign: Set a goal of 50 countries and hundreds of companies and investors to agree to put a price on carbon, and then present the accord to heads of state at the UN summit. Our climate team, led by Rachel Kyte, which includes staff from both the Bank and IFC, assembled a detailed campaign plan. They reached out first to nearly every World Bank country office to enlist support for a carbon pricing agreement from governments and companies. We contacted the UN Secretary-General’s office, and worked closely with the Deputy Secretary-General and the special UN climate envoys in this effort. Together with private sector groups we built an extraordinary coalition. At the start of the campaign, we counted 22 countries that would support this goal. With lobbying, the number kept climbing. Less than a week before the deadline, China, the world’s largest emitter of carbon dioxide, agreed to support carbon pricing. It became the 54th country to endorse the statement. In the four days before the summit, 20 more countries signed on.  At the time of the announcement, 74 governments and more than 1,000 companies and investors had agreed to put a price on carbon. Together, the countries account for up to 54 percent of the world’s carbon emissions, 52 percent of the world’s GDP, and nearly 50 percent of the world’s population. Later today, Ministers, CEOs and the World Bank Climate Group will join me to turn this pledge into action. During all of our efforts on infrastructure, Ebola and climate change, teams from across the institution worked collaboratively and displayed an inspiring commitment to innovation. I’m so proud of them. Their efforts displayed creativity, knowledge, skill, intensity, passion and selflessness. Their sharing of ideas and best practices is precisely the culture we want to create at the World Bank Group. I’m sure that the fruits of their labors will save lives, promote economic growth, reduce poverty, and protect the planet for future generations. When I think of our teams’ breakthroughs on these three issues of global importance, and when I think of my talented colleagues, I see the future of the World Bank Group. Working with both the public and private sectors, we are trying to solve some of the most difficult problems in the world today, in a way that reflects what we know we can be when we are at our best – a truly one World Bank Group team. We must maintain this commitment because increasing global fragility and volatility will challenge us more and more every day. In our march to end extreme poverty – conflict, typhoons, floods, droughts, financial shocks and epidemics may, at times, slow us. But they will not stop us. The Bank will be aggressive and creative and apply large-scale solutions to help states manage, prepare for, recover from and conquer these risks, so they can grow and flourish. Ultimately, we will face these challenges together. We will end poverty by 2030. We will ensure that prosperity is shared among nations and all people. And we will protect the planet for future generations. Thank you very much.    ","master_date":"2014-10-10T08:50:00Z","master_date_srt":"2014-10-10T08:50:00Z","master_recent_date_srt":"2014-10-10T08:50:00Z","master_recent_date":"2014-10-10T08:50:00Z","short_description":"Speech by World Bank Group President Jim Yong Kim: “Tackling the Most Difficult Problems: Infrastructure, Ebola and Climate Change”","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","desc":" Chairman Pruaitch, Madame Lagarde, Governors, my friends Jim and Elaine Wolfensohn, Mrs. Robert McNamara, partners, and friends:  It is wonderful to see you again. First, I’d like to congratulate the winners of the Nobel Peace Prize, Malala Yousafzai and Kailash Satyarthi. Just one year ago, Malala and I sat together on a stage at the World Bank. She is an inspiration to all of us, and gives us hope for the new generation – especially the new generation of girls. When we were together last year, I spoke at length about the World Bank Group’s plans for its most significant reorganization in nearly two decades. Our goal was to ensure that we were fit for the purpose of meeting our twin goals: ending extreme poverty by 2030, and boosting shared prosperity for the poorest 40 percent in developing countries. During the last year, our reorganization has been a monumental undertaking. The World Bank Group has more than 16,000 staff, and about 7,000 of them have been transferred or remapped to new jobs. We have offices in more than 100 countries. And we made loans and investments last year totaling more than $60 billion dollars. The reorganization was launched with a clear purpose: We needed to be the best in the world at collecting and sharing development knowledge for the benefit of all our clients. Starting in July, we set up 19 different communities of experts – groups of some of the best development professionals in the world on water, finance, education, and climate, among many others. Their job is to seek out the best solutions to the most difficult development problems, and to share those solutions with our clients in a way that will further our mission to end poverty and boost shared prosperity. At the same time, we knew that we needed to substantially increase our ability to provide financing, risk management products, and other financial services, to middle-income countries. Through the creative and intense work of our finance group, brilliantly led by Bertrand Badré, we have increased our annual lending capacity for these emerging economies, from $15 billion dollars to more than $25 billion per year. This flexibility will help us direct more resources to the areas that need them most – sub-Saharan Africa and South Asia, which is where most of the world’s poorest people live. Economic growth is the most powerful tool we have to end poverty, yet without infrastructure – electricity, water, and roads – growth will never take off. As I will explain, the world’s deficit of these building blocks for growth is substantial. Just think about the fact that sub-Saharan Africa generates as much power in a year as Spain. If we are to end poverty, we need to power Africa.    The World Bank Group’s financing for infrastructure reached $24 billion dollars in fiscal year 2014 – nearly 40 percent of our total commitments. But our loans and projects will fall far short of what the developing world needs. The infrastructure gap is simply enormous – an estimated $1 trillion to $1.5 trillion dollars more is needed each year. To fill this gap, we need to tap into the trillions of dollars held by institutional investors – most of which is sitting on the sidelines – and direct those assets into projects that will have great benefit for a range of developing countries.  Today, the developing world spends about $1 trillion dollars on infrastructure, and only a small share of those projects involve private actors. Overall, private investments and public-private partnerships in developing countries totaled $150 billion dollars in 2013, down from $186 billion dollars in 2012. So it will take the commitment of all of us to help low- and middle-income countries bridge the massive infrastructure divide. Yesterday, we announced the creation of the Global Infrastructure Facility, which is designed to attract financing for these states’ infrastructure needs. This platform, called the GIF, will bring together institutional investors, development banks, and public officials to tackle the infrastructure deficit in new and creative ways. Together, they will create a robust pipeline of infrastructure projects for emerging markets and poor countries.   While building infrastructure will help us promote growth in the long run, ending poverty by 2030 also requires us to be vigilant against threats to the growth of the global economy.  In a world where natural disasters, conflict, financial shocks and epidemics are becoming more frequent and destructive, we at the World Bank Group must do everything we can to become even more relevant. Indeed, we’ve been fully engaged lately in fighting two of these global threats: the Ebola epidemic and climate change. This is no accident. It exemplifies what we want to become – an indispensable partner for both low- and middle-income countries in their efforts to solve their most difficult challenges. Ebola and climate change have a few things in common. Most importantly, we are running out of time to find solutions to both. Also, until very recently, the plans to fight them were either non-existent or inadequate. And, inaction is literally killing people – one because of the rapid spread of a deadly virus, the other from the poisoning of the atmosphere and the oceans. And finally, perhaps most critically from our point of view, resolving these problems is essential to development, whether from the perspective of human suffering, economic growth, or public health. In our work on both Ebola and climate, we have not only been in the middle of pressing global concerns, we also have been working differently, and more effectively, at least partly because our reorganization and focus on innovation has made us more fit for purpose. For Ebola, the global response has been late, inadequate and slow. Recently, the international community has made positive strides in its response, led by the United States and the United Kingdom, as well as international institutions like the United Nations and the International Monetary Fund. Nonetheless, we still can do much more. Close to a year ago, just weeks after Typhoon Haiyan caused major destruction and loss of lives in the Philippines, 150 medical response teams – each with 25 to 30 people – had been deployed to the archipelago’s hardest-hit areas. But in Guinea, Liberia and Sierra Leone, the three West African countries hit hardest by the Ebola outbreak, just 30 medical response teams are on the ground, treating and caring for patients – even though we are now 11 months into this crisis. More health workers have been promised, but they’re arriving too slowly. The Ebola outbreak poses one of the most complex and difficult challenges that I’ve seen in all my years as an infectious disease physician. Because of the poverty in the three most affected countries, it exceeds the capacity of their emergency, health and fiscal resources. Faced with these conditions, we must guard against approaches that are based on aspirations for these countries and the poor that are too low to treat and contain the epidemic. Usually, the World Bank Group has worked in the medium- to long-term on development projects and helping clients build the systems necessary to promote economic growth, create jobs, educate children, and improve health. To combat Ebola, we needed to move to an emergency footing and quickly.   We looked across the entire Bank and brought the institution’s full firepower to bear against the virus. We’ve sent capital, shared knowledge, helped develop response strategies, and analyzed the potential economic impact.  In the three African countries, our teams for months have worked closely with the governments to identify priority actions, ensure disbursement of funds, and assist in organizing major shipments of supplies. From Washington, scores of staff from our Africa region; the health, nutrition and population global practice; development finance and development economics management units; and the International Finance Corporation, came together to work as one team. They have worked on contracts with the countries so they can quickly accept our grants; economic impact analyses; and longer-range planning to rebuild the countries’ health systems once the crisis is over. To smooth coordination, members of my office have worked out of the United Nations Ebola response headquarters. The stakes of this effort in human lives and economic growth are incredibly high and grow higher every day we delay in ramping up our response.  For this reason, I have spent a lot of time over the last two months working with Bank colleagues to stop the virus. I have been in frequent contact with Presidents Condé, Johnson Sirleaf, and Koroma to understand how the Bank can help them on the front lines. I have also reached out to leaders from all over Africa and donor nations, to relay the most important message: We must do all we can to stop Ebola, and we must act now because delay exponentially raises the human and economic cost of stopping the epidemic. So, once engaged, we’ve moved with creativity, speed and purpose. We innovated, using IDA’s Crisis Response Window as a source of funding – something that had never been done before in these circumstances. It took our teams nine days to work out multiple complicated negotiations with country officials in order to disburse $105 million dollars in emergency funds – a time frame unheard of in our institution. Working around the clock, our economists ran sophisticated modeling that, in only a few weeks, produced impact assessments from Ebola in the three countries and the region. Their assessment is grim: The economic impact of Ebola on West Africa could be as high as $32.6 billion dollars over the next two years. I’d like to thank the strong leadership of Sri Mulyani Indrawati, Makhtar Diop, Joachim von Amsberg, and, especially, Timothy Evans. Even as we focus intensely on the emergency response, we must also plan for the next epidemic, which could spread much more quickly, kill even more people, and potentially devastate the global economy. The world has an IMF to coordinate and work with central banks and ministries to respond to financial crises. When it comes to health emergencies, however, our institutional toolbox is empty: There’s no such center of knowledge and skill for response and coordination.    So, in the last week or two, our finance teams have proposed several solutions that would address the financial part of this problem, including a new pandemic emergency facility that could disburse money immediately to countries in the face of an outbreak. Such a device would pre-package a response, establishing contingent funding agreements with donors and receipt mechanisms for possible recipients. So when a global health emergency is declared, financial support would be readily available and flow quickly to support an immediate response. With the support of our shareholders, we would like to develop this proposal with our partners at the United Nations, the IMF and regional development banks.  Whatever form this instrument takes, having such a resource would force us to have concrete plans to tackle the next outbreak and may even provide an advance market signal for producers of vaccines and drugs.  What we’ve done on Ebola to date has been heavily informed by our focus over the last two years on climate change. Soon after I started at the World Bank, I asked my team a simple question: What’s the plan to fight climate change? The responses received from our staff and even from leaders in the climate change community were mostly tactical: new technologies here, some efficiencies there. While important, they were not equal to the challenge of keeping a global increase in temperature below 2 degrees Celsius. So, working with others, we developed our own strategy that we hoped could take us a long way toward achieving this objective. Our plan had five parts: Put a price on carbon; eliminate fossil fuel subsidies; build cleaner cities, increase climate-smart agricultural practices, and invest in renewable sources of energy. Getting something done on even one of these priorities required intense focus. In advance of the recent UN Climate Summit, I again asked my team some questions:  What is the smallest number of the most important things we can do for the summit, and what are they? I didn’t want them to focus on all the things we need to do; I wanted them to focus on a few essential things that we might be able to push forward. They told me the most important thing to do immediately was put a price on carbon. On its own, this step would not achieve our goal of staying below a 2-degree Celsius world; however, without it, limiting global emissions would take much longer. So we decided to mount a campaign: Set a goal of 50 countries and hundreds of companies and investors to agree to put a price on carbon, and then present the accord to heads of state at the UN summit. Our climate team, led by Rachel Kyte, which includes staff from both the Bank and IFC, assembled a detailed campaign plan. They reached out first to nearly every World Bank country office to enlist support for a carbon pricing agreement from governments and companies. We contacted the UN Secretary-General’s office, and worked closely with the Deputy Secretary-General and the special UN climate envoys in this effort. Together with private sector groups we built an extraordinary coalition. At the start of the campaign, we counted 22 countries that would support this goal. With lobbying, the number kept climbing. Less than a week before the deadline, China, the world’s largest emitter of carbon dioxide, agreed to support carbon pricing. It became the 54th country to endorse the statement. In the four days before the summit, 20 more countries signed on.  At the time of the announcement, 74 governments and more than 1,000 companies and investors had agreed to put a price on carbon. Together, the countries account for up to 54 percent of the world’s carbon emissions, 52 percent of the world’s GDP, and nearly 50 percent of the world’s population. Later today, Ministers, CEOs and the World Bank Climate Group will join me to turn this pledge into action. During all of our efforts on infrastructure, Ebola and climate change, teams from across the institution worked collaboratively and displayed an inspiring commitment to innovation. I’m so proud of them. Their efforts displayed creativity, knowledge, skill, intensity, passion and selflessness. Their sharing of ideas and best practices is precisely the culture we want to create at the World Bank Group. I’m sure that the fruits of their labors will save lives, promote economic growth, reduce poverty, and protect the planet for future generations. When I think of our teams’ breakthroughs on these three issues of global importance, and when I think of my talented colleagues, I see the future of the World Bank Group. Working with both the public and private sectors, we are trying to solve some of the most difficult problems in the world today, in a way that reflects what we know we can be when we are at our best – a truly one World Bank Group team. We must maintain this commitment because increasing global fragility and volatility will challenge us more and more every day. In our march to end extreme poverty – conflict, typhoons, floods, droughts, financial shocks and epidemics may, at times, slow us. But they will not stop us. The Bank will be aggressive and creative and apply large-scale solutions to help states manage, prepare for, recover from and conquer these risks, so they can grow and flourish. Ultimately, we will face these challenges together. We will end poverty by 2030. We will ensure that prosperity is shared among nations and all people. And we will protect the planet for future generations. Thank you very much.    ","date":"2014-10-10T08:50:00Z","contenttype":"Speeches and Transcripts"},"_d4338184e1f12c502fca4ee88c517d5c9b88151d":{"id":"d4338184e1f12c502fca4ee88c517d5c9b88151d","title":"Op-Ed: Listen More Closely to Africa’s Voice on Climate Change","countrycode":"GH","country":"Ghana","country_exact":"Ghana","countrycode_exact":"GH","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/opinion/2014/09/22/op-ed-listen-more-closely-to-africas-voice-on-climate-change","count":"Ghana","descr":"“In the global discussions around rising sea levels, shrinking rain forests, imperiled species and biodiversity… Africa’s unique stake…needs to be more front and center.” – Makhtar Diop","keywd":"subject:climate finance,subject:climate change,subject:water,subject:environment and natural resources,country:Ghana,organization:United Nations (UN),regions:Africa","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","topic":"Climate Finance,Climate Change,Water,Environment And Natural Resources","unit":"United Nations (UN)","cqpath":"/content/wb-home/en/news/opinion/2014/09/22/op-ed-listen-more-closely-to-africas-voice-on-climate-change","regionname":"Africa","wcmsource":"cq5","content":" WASHINGTON, September 22, 2014—As more than 120 world leaders converge on New York this week for an unprecedented UN climate summit, one highly significant voice needs to be heard.  That voice belongs to Africa.  In all the global discussions around rising sea levels, shrinking rain forests, imperiled species and biodiversity, green bonds and carbon prices, Africa’s unique stake and contribution to a global climate strategy needs to be more front and center. This is only right for a continent that has contributed the least to the profound changes underway in the Earth’s climate but whose people will suffer its withering impact the most. Consider that Africa is responsible for only 3.8 percent of global greenhouse gas emissions yet from the Sahel to the Horn of Africa to the south of the continent, African countries experience first-hand the devastating effects of increasingly severe droughts and floods and more extreme weather patterns that scorch or drown their crops. Africa’s political and business leaders are already committed to a climate-resilient growth path, yet the path promises to be bumpy.  Recent World Bank research outlines a disturbing scenario for Sub-Saharan Africa in a 2°C warmer world, forecasting dramatic effects on agriculture and food production in a region where 80 percent of Africans rely on agriculture to make ends meet for their families. Consequently, we cannot separate agriculture and food security from climate change. Agriculture in Africa accounts for 30-40 percent of GDP. A 1.5°C to 2°C increase in temperature by the 2030s and 2040s will lead to a 40- to 80-percent reduction in the area of land suitable for growing maize, millet and sorghum. These cereals are the mainstay of African diets. They provide the bulk of people’s daily food intake especially in the drylands of the Sahel and the Horn of Africa.   We must also amplify the links between climate change and conflict. In a groundbreaking 2013 paper published in Science magazine, economists Solomon Hsiang, Marshall Burke, and Edward Miguel argued that there is strong evidence linking climatic events to human conflict in Africa and across all other major regions of the world. The magnitude of climate change is substantial they wrote: for each one standard deviation change in climate toward warmer temperatures or more extreme rainfall, median estimates indicate that the frequency of interpersonal violence rises 4% and the frequency of intergroup conflict rises 14%. Africa’s harsher climate of the future will also change traditional livelihoods. As temperatures rise, Africa’s iconic savanna grasslands will dry up and threaten the livelihoods of their pastoral communities. Given the sensitivity of livestock—their goats, cows, and other animals—to extreme heat, too little water and feed, and disease, pastoralism as a centuries-old way of life is likely to be in danger. Rainfall patterns will dramatically change; droughts and floods will be more frequent and lead to a 3-percent expansion in total arid areas. Coastal populations in Guinea-Bissau, Gambia and Mozambique would face the greatest risk of inundation and storm surges. Coastal erosion represents a major threat as a large part of Africa’s GDP derives from activities such as fishing, tourism and trade.  Entire cities and villages along the coast – capital cities and crucial deep-sea ports -- could be wiped out due to rising sea-levels. Countries such as Togo, Ghana and Mozambique could lose more than 50 percent of their coastal GDP, according to recent estimates.   Sustainable management of the region’s rich natural resources—forests, water, land—can contribute to the storage of carbon, while supporting livelihoods and generating economic benefits. Madagascar, one of the poorest countries in the world, also harbors 5 percent of the world’s known biodiversity. Before the country’s political crisis, nature-based tourism was a $500-million industry, growing at 10 percent per year. But the island is also on the list of the most climate change-vulnerable countries which will have a significant impact on its biodiversity. Africa is one of the world’s fastest-urbanizing continents. Parched rural hinterlands will steadily force people to move to already-crowded cities, creating overcrowding, stressing supplies of safe drinking water and drainage and sanitation. At the African Union Summit in Malabo, last June, Tanzanian President Jakaya Kikwete reminded his audience that the “effects of climate change are likely to strike to the detriment of the whole continent\".  He added that Africa now requires in excess of US$15 billion per year to combat climate change, a figure that continues to rise. The good news is that Africa is uniquely well positioned to build resilience, especially in energy and agriculture, and has already embraced sustainability. Being green is good for business. In Kenya, small farmers are now earning carbon credits from sustainable farming. In South Africa, the city of Johannesburg recently issued its first green city bond to finance low-carbon infrastructure. In Mauritania, solar energy now powers 30 percent of Nouakchott’s energy use. In Africa, wind and solar potential can be over 1,000 GW but needs to be fully exploited. The continent has embarked on a clean power revolution that brings more electricity to people’s homes, businesses, clinics and schools. With only one in three Africans having access to energy, the task is urgent.  Africa has tremendous untapped hydro, geothermal, and solar power and must be developed to provide the electricity needed to offer sustained – and green – growth for the benefit of all its citizens. The World Bank is stepping up to the challenge.  We are financing transformational projects that attack poverty from multiple angles. We are supporting governments to promote “climate-smart agriculture” so that African farmers can achieve higher yields and make their farming more resilient to the changing climate.  In DRC, a $73.1-million technical assistance project will pave the way to bring hydroelectric power to 9 million people.  These interventions are just a starting point – not nearly enough to address the monumental energy needs of the continent.  Though prices for renewables have declined significantly in the past decade, these energy sources are still costly.  The green energy revolution in African cannot be achieved without financial support of the international community, to bring down the costs of adopting these clean technologies.     The warning signs are clear: climate change under even the 2°C scenario is a menacing threat to sustainable development in Africa. These impacts could potentially overwhelm existing development efforts. We ignore the early warning signs at our collective peril. But, through collective action, we can ensure a climate-resilient future that benefits all Africans and the entire planet.  ","content_1000":" WASHINGTON, September 22, 2014—As more than 120 world leaders converge on New York this week for an unprecedented UN climate summit, one highly significant voice needs to be heard.  That voice belongs to Africa.  In all the global discussions around rising sea levels, shrinking rain forests, imperiled species and biodiversity, green bonds and carbon prices, Africa’s unique stake and contribution to a global climate strategy needs to be more front and center. This is only right for a continent that has contributed the least to the profound changes underway in the Earth’s climate but whose people will suffer its withering impact the most. Consider that Africa is responsible for only 3.8 percent of global greenhouse gas emissions yet from the Sahel to the Horn of Africa to the south of the continent, African countries experience first-hand the devastating effects of increasingly severe droughts and floods and more extreme weather patterns that scorch or drown their crops. Afric","displayconttype":"Opinion","originating_unit":"Africa, AFR","originating_unit_exact":"Africa, AFR","displayconttype_exact":"Opinion","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Opinion","masterupi":"000112890","node_id":"d4338184e1f12c502fca4ee88c517d5c9b88151d","wn_title":"Op-Ed: Listen More Closely to Africa’s Voice on Climate Change","wn_desc":" WASHINGTON, September 22, 2014—As more than 120 world leaders converge on New York this week for an unprecedented UN climate summit, one highly significant voice needs to be heard.  That voice belongs to Africa.  In all the global discussions around rising sea levels, shrinking rain forests, imperiled species and biodiversity, green bonds and carbon prices, Africa’s unique stake and contribution to a global climate strategy needs to be more front and center. This is only right for a continent that has contributed the least to the profound changes underway in the Earth’s climate but whose people will suffer its withering impact the most. Consider that Africa is responsible for only 3.8 percent of global greenhouse gas emissions yet from the Sahel to the Horn of Africa to the south of the continent, African countries experience first-hand the devastating effects of increasingly severe droughts and floods and more extreme weather patterns that scorch or drown their crops. Africa’s political and business leaders are already committed to a climate-resilient growth path, yet the path promises to be bumpy.  Recent World Bank research outlines a disturbing scenario for Sub-Saharan Africa in a 2°C warmer world, forecasting dramatic effects on agriculture and food production in a region where 80 percent of Africans rely on agriculture to make ends meet for their families. Consequently, we cannot separate agriculture and food security from climate change. Agriculture in Africa accounts for 30-40 percent of GDP. A 1.5°C to 2°C increase in temperature by the 2030s and 2040s will lead to a 40- to 80-percent reduction in the area of land suitable for growing maize, millet and sorghum. These cereals are the mainstay of African diets. They provide the bulk of people’s daily food intake especially in the drylands of the Sahel and the Horn of Africa.   We must also amplify the links between climate change and conflict. In a groundbreaking 2013 paper published in Science magazine, economists Solomon Hsiang, Marshall Burke, and Edward Miguel argued that there is strong evidence linking climatic events to human conflict in Africa and across all other major regions of the world. The magnitude of climate change is substantial they wrote: for each one standard deviation change in climate toward warmer temperatures or more extreme rainfall, median estimates indicate that the frequency of interpersonal violence rises 4% and the frequency of intergroup conflict rises 14%. Africa’s harsher climate of the future will also change traditional livelihoods. As temperatures rise, Africa’s iconic savanna grasslands will dry up and threaten the livelihoods of their pastoral communities. Given the sensitivity of livestock—their goats, cows, and other animals—to extreme heat, too little water and feed, and disease, pastoralism as a centuries-old way of life is likely to be in danger. Rainfall patterns will dramatically change; droughts and floods will be more frequent and lead to a 3-percent expansion in total arid areas. Coastal populations in Guinea-Bissau, Gambia and Mozambique would face the greatest risk of inundation and storm surges. Coastal erosion represents a major threat as a large part of Africa’s GDP derives from activities such as fishing, tourism and trade.  Entire cities and villages along the coast – capital cities and crucial deep-sea ports -- could be wiped out due to rising sea-levels. Countries such as Togo, Ghana and Mozambique could lose more than 50 percent of their coastal GDP, according to recent estimates.   Sustainable management of the region’s rich natural resources—forests, water, land—can contribute to the storage of carbon, while supporting livelihoods and generating economic benefits. Madagascar, one of the poorest countries in the world, also harbors 5 percent of the world’s known biodiversity. Before the country’s political crisis, nature-based tourism was a $500-million industry, growing at 10 percent per year. But the island is also on the list of the most climate change-vulnerable countries which will have a significant impact on its biodiversity. Africa is one of the world’s fastest-urbanizing continents. Parched rural hinterlands will steadily force people to move to already-crowded cities, creating overcrowding, stressing supplies of safe drinking water and drainage and sanitation. At the African Union Summit in Malabo, last June, Tanzanian President Jakaya Kikwete reminded his audience that the “effects of climate change are likely to strike to the detriment of the whole continent\".  He added that Africa now requires in excess of US$15 billion per year to combat climate change, a figure that continues to rise. The good news is that Africa is uniquely well positioned to build resilience, especially in energy and agriculture, and has already embraced sustainability. Being green is good for business. In Kenya, small farmers are now earning carbon credits from sustainable farming. In South Africa, the city of Johannesburg recently issued its first green city bond to finance low-carbon infrastructure. In Mauritania, solar energy now powers 30 percent of Nouakchott’s energy use. In Africa, wind and solar potential can be over 1,000 GW but needs to be fully exploited. The continent has embarked on a clean power revolution that brings more electricity to people’s homes, businesses, clinics and schools. With only one in three Africans having access to energy, the task is urgent.  Africa has tremendous untapped hydro, geothermal, and solar power and must be developed to provide the electricity needed to offer sustained – and green – growth for the benefit of all its citizens. The World Bank is stepping up to the challenge.  We are financing transformational projects that attack poverty from multiple angles. We are supporting governments to promote “climate-smart agriculture” so that African farmers can achieve higher yields and make their farming more resilient to the changing climate.  In DRC, a $73.1-million technical assistance project will pave the way to bring hydroelectric power to 9 million people.  These interventions are just a starting point – not nearly enough to address the monumental energy needs of the continent.  Though prices for renewables have declined significantly in the past decade, these energy sources are still costly.  The green energy revolution in African cannot be achieved without financial support of the international community, to bring down the costs of adopting these clean technologies.     The warning signs are clear: climate change under even the 2°C scenario is a menacing threat to sustainable development in Africa. These impacts could potentially overwhelm existing development efforts. We ignore the early warning signs at our collective peril. But, through collective action, we can ensure a climate-resilient future that benefits all Africans and the entire planet.  ","master_date":"2014-09-22T13:30:00Z","master_date_srt":"2014-09-22T13:30:00Z","master_recent_date_srt":"2014-09-22T13:30:00Z","master_recent_date":"2014-09-22T13:30:00Z","masterregion_exact":"Africa","short_description":"“In the global discussions around rising sea levels, shrinking rain forests, imperiled species and biodiversity… Africa’s unique stake…needs to be more front and center.” – Makhtar Diop","masterconttype_exact":"Opinion","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":" WASHINGTON, September 22, 2014—As more than 120 world leaders converge on New York this week for an unprecedented UN climate summit, one highly significant voice needs to be heard.  That voice belongs to Africa.  In all the global discussions around rising sea levels, shrinking rain forests, imperiled species and biodiversity, green bonds and carbon prices, Africa’s unique stake and contribution to a global climate strategy needs to be more front and center. This is only right for a continent that has contributed the least to the profound changes underway in the Earth’s climate but whose people will suffer its withering impact the most. Consider that Africa is responsible for only 3.8 percent of global greenhouse gas emissions yet from the Sahel to the Horn of Africa to the south of the continent, African countries experience first-hand the devastating effects of increasingly severe droughts and floods and more extreme weather patterns that scorch or drown their crops. Africa’s political and business leaders are already committed to a climate-resilient growth path, yet the path promises to be bumpy.  Recent World Bank research outlines a disturbing scenario for Sub-Saharan Africa in a 2°C warmer world, forecasting dramatic effects on agriculture and food production in a region where 80 percent of Africans rely on agriculture to make ends meet for their families. Consequently, we cannot separate agriculture and food security from climate change. Agriculture in Africa accounts for 30-40 percent of GDP. A 1.5°C to 2°C increase in temperature by the 2030s and 2040s will lead to a 40- to 80-percent reduction in the area of land suitable for growing maize, millet and sorghum. These cereals are the mainstay of African diets. They provide the bulk of people’s daily food intake especially in the drylands of the Sahel and the Horn of Africa.   We must also amplify the links between climate change and conflict. In a groundbreaking 2013 paper published in Science magazine, economists Solomon Hsiang, Marshall Burke, and Edward Miguel argued that there is strong evidence linking climatic events to human conflict in Africa and across all other major regions of the world. The magnitude of climate change is substantial they wrote: for each one standard deviation change in climate toward warmer temperatures or more extreme rainfall, median estimates indicate that the frequency of interpersonal violence rises 4% and the frequency of intergroup conflict rises 14%. Africa’s harsher climate of the future will also change traditional livelihoods. As temperatures rise, Africa’s iconic savanna grasslands will dry up and threaten the livelihoods of their pastoral communities. Given the sensitivity of livestock—their goats, cows, and other animals—to extreme heat, too little water and feed, and disease, pastoralism as a centuries-old way of life is likely to be in danger. Rainfall patterns will dramatically change; droughts and floods will be more frequent and lead to a 3-percent expansion in total arid areas. Coastal populations in Guinea-Bissau, Gambia and Mozambique would face the greatest risk of inundation and storm surges. Coastal erosion represents a major threat as a large part of Africa’s GDP derives from activities such as fishing, tourism and trade.  Entire cities and villages along the coast – capital cities and crucial deep-sea ports -- could be wiped out due to rising sea-levels. Countries such as Togo, Ghana and Mozambique could lose more than 50 percent of their coastal GDP, according to recent estimates.   Sustainable management of the region’s rich natural resources—forests, water, land—can contribute to the storage of carbon, while supporting livelihoods and generating economic benefits. Madagascar, one of the poorest countries in the world, also harbors 5 percent of the world’s known biodiversity. Before the country’s political crisis, nature-based tourism was a $500-million industry, growing at 10 percent per year. But the island is also on the list of the most climate change-vulnerable countries which will have a significant impact on its biodiversity. Africa is one of the world’s fastest-urbanizing continents. Parched rural hinterlands will steadily force people to move to already-crowded cities, creating overcrowding, stressing supplies of safe drinking water and drainage and sanitation. At the African Union Summit in Malabo, last June, Tanzanian President Jakaya Kikwete reminded his audience that the “effects of climate change are likely to strike to the detriment of the whole continent\".  He added that Africa now requires in excess of US$15 billion per year to combat climate change, a figure that continues to rise. The good news is that Africa is uniquely well positioned to build resilience, especially in energy and agriculture, and has already embraced sustainability. Being green is good for business. In Kenya, small farmers are now earning carbon credits from sustainable farming. In South Africa, the city of Johannesburg recently issued its first green city bond to finance low-carbon infrastructure. In Mauritania, solar energy now powers 30 percent of Nouakchott’s energy use. In Africa, wind and solar potential can be over 1,000 GW but needs to be fully exploited. The continent has embarked on a clean power revolution that brings more electricity to people’s homes, businesses, clinics and schools. With only one in three Africans having access to energy, the task is urgent.  Africa has tremendous untapped hydro, geothermal, and solar power and must be developed to provide the electricity needed to offer sustained – and green – growth for the benefit of all its citizens. The World Bank is stepping up to the challenge.  We are financing transformational projects that attack poverty from multiple angles. We are supporting governments to promote “climate-smart agriculture” so that African farmers can achieve higher yields and make their farming more resilient to the changing climate.  In DRC, a $73.1-million technical assistance project will pave the way to bring hydroelectric power to 9 million people.  These interventions are just a starting point – not nearly enough to address the monumental energy needs of the continent.  Though prices for renewables have declined significantly in the past decade, these energy sources are still costly.  The green energy revolution in African cannot be achieved without financial support of the international community, to bring down the costs of adopting these clean technologies.     The warning signs are clear: climate change under even the 2°C scenario is a menacing threat to sustainable development in Africa. These impacts could potentially overwhelm existing development efforts. We ignore the early warning signs at our collective peril. But, through collective action, we can ensure a climate-resilient future that benefits all Africans and the entire planet.  ","date":"2014-09-22T13:30:00Z","contenttype":"Opinion"},"_77f47557e9ac1c9eff62a3662cd8ab5dfe177f60":{"id":"77f47557e9ac1c9eff62a3662cd8ab5dfe177f60","title":"Helping Benin Build a Sustainable Future","countrycode":"BJ","country":"Benin","country_exact":"Benin","countrycode_exact":"BJ","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2014/06/17/propulser-benin-sur-voie-croissance-plus-forte","count":"Benin","descr":"Helping Benin Build a Sustainable Future","keywd":"regions:Africa,country:Benin","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","cqpath":"/content/wb-home/en/news/speech/2014/06/17/propulser-benin-sur-voie-croissance-plus-forte","regionname":"Africa","wcmsource":"cq5","content":"  Round Table of Benin’s Development Partners and Private Investors  Makhtar Diop, World Bank Vice President for the Africa Region June 17–19, 2014, Paris, France As prepared for delivery    Mr. President of the Republic of Benin, Madam Secretary of State for Trade, Distinguished guests and participants attending in your various capacities, Ladies and gentlemen,  It is a pleasure to be here in Paris this morning and to participate in this important conference on Benin’s development in your distinguished company. This conference is taking place at a seminal moment for Sub-Saharan Africa and at a pivotal period for Benin. After being known for several decades as the continent of armed conflict, rampant poverty, and endemic malnutrition, Africa is now experiencing an unprecedented growth spurt. Our 2014 projected growth rate for Sub-Saharan Africa is 5.2 percent—a 0.5 percent improvement over 2013, led essentially by greater investment in mining and infrastructure. The continent’s strong growth is also attributable to the development of commercial agriculture, to the processing and added value work being done locally, as well as to robust household consumption that rose by almost 3.7 percent annually over the last ten years. Household consumption is also fueled by foreign remittances, which amounted to US$32 billion in 2013—a 6.2 percent increase that surpasses the 2011 record of US$30 billion. This is also reflected in the emergence of a middle class in many African countries.  Mr. President,  Africa’s population is young and growing rapidly. Fifty percent of its population is under age 25. Each year, 11 million young people join the workforce. This strong demographic growth, if accompanied by proper training in science, technology, and math, should position Africa to become a global production center and sustainable development hub. Mr. President, The bold reforms made by several African countries in recent years, including Benin, are fueling the robust macroeconomic performance we are witnessing. It is important to maintain this momentum so that growth can be even stronger and more inclusive. This is a prerequisite to enable countries and people to withstand various shocks, whether stemming from commodity price volatility or the effects of climate change. For this reason, my institution is firmly committed to continuing to support Africa through transformative programs and access to innovative financing, with the aim of significantly expanding its production base for manufactured products and diversifying its economies, creating jobs, and eradicating extreme poverty.  To achieve this, it is imperative for us to resolve the energy issue, as this is central to our vision for Africa. Expanding access by the people and economic operators to modern, efficient, and low-cost energy services will be a key performance indicator for all the public policies and programs that we support. Mr. President,  Allow me to commend you on the progress made in recent years by Benin in the economic sphere. The successive growth strategies aimed at poverty reduction have contributed to the achievement of a growth rate of roughly 4 percent in the past decade. However, this rate is not enough to significantly reduce poverty owing, among other things, to strong demographic growth, which stands at 3.6 percent.  We therefore support the goal set by the authorities in its new strategy to accelerate Benin’s pace of socioeconomic development by strengthening infrastructure and improving human capital, the supply of basic social services, and good governance, with a view to achieving robust growth projected at 7 to 8 percent in the years ahead. I therefore commend the Government of Benin for taking the initiative to organize this round table to mobilize the financing needed to implement this strategy. Mr. President, We are pleased to note that Benin has come to this round table with specific projects and clear choices.  Indeed, it must be stressed that public resources are limited while there is tremendous demand for public investment to develop the economic sector.  Against this backdrop, priorities must be set.   I would like to urge the Government to continue the reforms necessary to improve the investment climate and promote public-private partnerships. The flagship projects that will be presented at this round table, in particular the backbone project and the electricity infrastructure investment program in Benin are key, as they will impact various areas of the national economy.  As you are aware, the World Bank is contributing to the development of Benin’s infrastructure by placing emphasis on regional approaches through such projects as the Abidjan-Lagos Trade and Transport Facilitation Project, the West African Power Pool (WAPP), and the West African Regional Communications Infrastructure Project (WARCIP), which should revolutionize the cost and speed of the Internet in Benin. Lastly, I would like to note the importance accorded by your strategy to social issues.  Strong demographic growth does indeed pose challenges in terms of the demand for education, health, nutrition, employment, housing, and urban management services. Benin must turn this demographic pressure into an economic advantage in the medium term and derive benefit from the demographic dividend.   Allow me to conclude by congratulating the Beninese authorities once again on this initiative and expressing my wish for the resounding success of this round table. Thank you.  ","content_1000":"  Round Table of Benin’s Development Partners and Private Investors  Makhtar Diop, World Bank Vice President for the Africa Region June 17–19, 2014, Paris, France As prepared for delivery    Mr. President of the Republic of Benin, Madam Secretary of State for Trade, Distinguished guests and participants attending in your various capacities, Ladies and gentlemen,  It is a pleasure to be here in Paris this morning and to participate in this important conference on Benin’s development in your distinguished company. This conference is taking place at a seminal moment for Sub-Saharan Africa and at a pivotal period for Benin. After being known for several decades as the continent of armed conflict, rampant poverty, and endemic malnutrition, Africa is now experiencing an unprecedented growth spurt. Our 2014 projected growth rate for Sub-Saharan Africa is 5.2 percent—a 0.5 percent improvement over 2013, led essentially by greater investment in mining and infrastructure. The continent’s st","displayconttype":"Speeches and Transcripts","originating_unit":"Africa, AFR","originating_unit_exact":"Africa, AFR","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Speeches and Transcripts","node_id":"77f47557e9ac1c9eff62a3662cd8ab5dfe177f60","wn_title":"Helping Benin Build a Sustainable Future","wn_desc":"  Round Table of Benin’s Development Partners and Private Investors  Makhtar Diop, World Bank Vice President for the Africa Region June 17–19, 2014, Paris, France As prepared for delivery    Mr. President of the Republic of Benin, Madam Secretary of State for Trade, Distinguished guests and participants attending in your various capacities, Ladies and gentlemen,  It is a pleasure to be here in Paris this morning and to participate in this important conference on Benin’s development in your distinguished company. This conference is taking place at a seminal moment for Sub-Saharan Africa and at a pivotal period for Benin. After being known for several decades as the continent of armed conflict, rampant poverty, and endemic malnutrition, Africa is now experiencing an unprecedented growth spurt. Our 2014 projected growth rate for Sub-Saharan Africa is 5.2 percent—a 0.5 percent improvement over 2013, led essentially by greater investment in mining and infrastructure. The continent’s strong growth is also attributable to the development of commercial agriculture, to the processing and added value work being done locally, as well as to robust household consumption that rose by almost 3.7 percent annually over the last ten years. Household consumption is also fueled by foreign remittances, which amounted to US$32 billion in 2013—a 6.2 percent increase that surpasses the 2011 record of US$30 billion. This is also reflected in the emergence of a middle class in many African countries.  Mr. President,  Africa’s population is young and growing rapidly. Fifty percent of its population is under age 25. Each year, 11 million young people join the workforce. This strong demographic growth, if accompanied by proper training in science, technology, and math, should position Africa to become a global production center and sustainable development hub. Mr. President, The bold reforms made by several African countries in recent years, including Benin, are fueling the robust macroeconomic performance we are witnessing. It is important to maintain this momentum so that growth can be even stronger and more inclusive. This is a prerequisite to enable countries and people to withstand various shocks, whether stemming from commodity price volatility or the effects of climate change. For this reason, my institution is firmly committed to continuing to support Africa through transformative programs and access to innovative financing, with the aim of significantly expanding its production base for manufactured products and diversifying its economies, creating jobs, and eradicating extreme poverty.  To achieve this, it is imperative for us to resolve the energy issue, as this is central to our vision for Africa. Expanding access by the people and economic operators to modern, efficient, and low-cost energy services will be a key performance indicator for all the public policies and programs that we support. Mr. President,  Allow me to commend you on the progress made in recent years by Benin in the economic sphere. The successive growth strategies aimed at poverty reduction have contributed to the achievement of a growth rate of roughly 4 percent in the past decade. However, this rate is not enough to significantly reduce poverty owing, among other things, to strong demographic growth, which stands at 3.6 percent.  We therefore support the goal set by the authorities in its new strategy to accelerate Benin’s pace of socioeconomic development by strengthening infrastructure and improving human capital, the supply of basic social services, and good governance, with a view to achieving robust growth projected at 7 to 8 percent in the years ahead. I therefore commend the Government of Benin for taking the initiative to organize this round table to mobilize the financing needed to implement this strategy. Mr. President, We are pleased to note that Benin has come to this round table with specific projects and clear choices.  Indeed, it must be stressed that public resources are limited while there is tremendous demand for public investment to develop the economic sector.  Against this backdrop, priorities must be set.   I would like to urge the Government to continue the reforms necessary to improve the investment climate and promote public-private partnerships. The flagship projects that will be presented at this round table, in particular the backbone project and the electricity infrastructure investment program in Benin are key, as they will impact various areas of the national economy.  As you are aware, the World Bank is contributing to the development of Benin’s infrastructure by placing emphasis on regional approaches through such projects as the Abidjan-Lagos Trade and Transport Facilitation Project, the West African Power Pool (WAPP), and the West African Regional Communications Infrastructure Project (WARCIP), which should revolutionize the cost and speed of the Internet in Benin. Lastly, I would like to note the importance accorded by your strategy to social issues.  Strong demographic growth does indeed pose challenges in terms of the demand for education, health, nutrition, employment, housing, and urban management services. Benin must turn this demographic pressure into an economic advantage in the medium term and derive benefit from the demographic dividend.   Allow me to conclude by congratulating the Beninese authorities once again on this initiative and expressing my wish for the resounding success of this round table. Thank you.  ","master_date":"2014-06-17T15:36:00Z","master_date_srt":"2014-06-17T15:36:00Z","master_recent_date_srt":"2014-06-17T15:36:00Z","master_recent_date":"2014-06-17T15:36:00Z","masterregion_exact":"Africa","short_description":"Helping Benin Build a Sustainable Future","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":"  Round Table of Benin’s Development Partners and Private Investors  Makhtar Diop, World Bank Vice President for the Africa Region June 17–19, 2014, Paris, France As prepared for delivery    Mr. President of the Republic of Benin, Madam Secretary of State for Trade, Distinguished guests and participants attending in your various capacities, Ladies and gentlemen,  It is a pleasure to be here in Paris this morning and to participate in this important conference on Benin’s development in your distinguished company. This conference is taking place at a seminal moment for Sub-Saharan Africa and at a pivotal period for Benin. After being known for several decades as the continent of armed conflict, rampant poverty, and endemic malnutrition, Africa is now experiencing an unprecedented growth spurt. Our 2014 projected growth rate for Sub-Saharan Africa is 5.2 percent—a 0.5 percent improvement over 2013, led essentially by greater investment in mining and infrastructure. The continent’s strong growth is also attributable to the development of commercial agriculture, to the processing and added value work being done locally, as well as to robust household consumption that rose by almost 3.7 percent annually over the last ten years. Household consumption is also fueled by foreign remittances, which amounted to US$32 billion in 2013—a 6.2 percent increase that surpasses the 2011 record of US$30 billion. This is also reflected in the emergence of a middle class in many African countries.  Mr. President,  Africa’s population is young and growing rapidly. Fifty percent of its population is under age 25. Each year, 11 million young people join the workforce. This strong demographic growth, if accompanied by proper training in science, technology, and math, should position Africa to become a global production center and sustainable development hub. Mr. President, The bold reforms made by several African countries in recent years, including Benin, are fueling the robust macroeconomic performance we are witnessing. It is important to maintain this momentum so that growth can be even stronger and more inclusive. This is a prerequisite to enable countries and people to withstand various shocks, whether stemming from commodity price volatility or the effects of climate change. For this reason, my institution is firmly committed to continuing to support Africa through transformative programs and access to innovative financing, with the aim of significantly expanding its production base for manufactured products and diversifying its economies, creating jobs, and eradicating extreme poverty.  To achieve this, it is imperative for us to resolve the energy issue, as this is central to our vision for Africa. Expanding access by the people and economic operators to modern, efficient, and low-cost energy services will be a key performance indicator for all the public policies and programs that we support. Mr. President,  Allow me to commend you on the progress made in recent years by Benin in the economic sphere. The successive growth strategies aimed at poverty reduction have contributed to the achievement of a growth rate of roughly 4 percent in the past decade. However, this rate is not enough to significantly reduce poverty owing, among other things, to strong demographic growth, which stands at 3.6 percent.  We therefore support the goal set by the authorities in its new strategy to accelerate Benin’s pace of socioeconomic development by strengthening infrastructure and improving human capital, the supply of basic social services, and good governance, with a view to achieving robust growth projected at 7 to 8 percent in the years ahead. I therefore commend the Government of Benin for taking the initiative to organize this round table to mobilize the financing needed to implement this strategy. Mr. President, We are pleased to note that Benin has come to this round table with specific projects and clear choices.  Indeed, it must be stressed that public resources are limited while there is tremendous demand for public investment to develop the economic sector.  Against this backdrop, priorities must be set.   I would like to urge the Government to continue the reforms necessary to improve the investment climate and promote public-private partnerships. The flagship projects that will be presented at this round table, in particular the backbone project and the electricity infrastructure investment program in Benin are key, as they will impact various areas of the national economy.  As you are aware, the World Bank is contributing to the development of Benin’s infrastructure by placing emphasis on regional approaches through such projects as the Abidjan-Lagos Trade and Transport Facilitation Project, the West African Power Pool (WAPP), and the West African Regional Communications Infrastructure Project (WARCIP), which should revolutionize the cost and speed of the Internet in Benin. Lastly, I would like to note the importance accorded by your strategy to social issues.  Strong demographic growth does indeed pose challenges in terms of the demand for education, health, nutrition, employment, housing, and urban management services. Benin must turn this demographic pressure into an economic advantage in the medium term and derive benefit from the demographic dividend.   Allow me to conclude by congratulating the Beninese authorities once again on this initiative and expressing my wish for the resounding success of this round table. Thank you.  ","date":"2014-06-17T15:36:00Z","contenttype":"Speeches and Transcripts"},"_57efe7a8c72ba06072daec0038a3bc844cd488ab":{"id":"57efe7a8c72ba06072daec0038a3bc844cd488ab","title":"Op-Ed: Powering Science and Technology for Africa’s Economic Transformation","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/opinion/2014/05/20/op-ed-powering-science-and-technology-for-africas-economic-transformation","descr":"\"This new generation of young Africans must be equipped with the modern skills and knowledge they need to find African solutions to Africa’s challenges.\" - Makhtar Diop","keywd":"subject:social development,subject:science technology and innovation,subject:education,subject:innovation technology and entrepreneurship,subject:information and communication technologies,regions:Africa","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","topic":"Social Development,Science Technology And Innovation,Education,Innovation Technology And Entrepreneurship,Information And Communication Technologies","cqpath":"/content/wb-home/en/news/opinion/2014/05/20/op-ed-powering-science-and-technology-for-africas-economic-transformation","regionname":"Africa","wcmsource":"cq5","content":" Africa has achieved exceptional economic growth over the past decade, averaging 4.5 percent a year and underpinned by prudent macroeconomic management.  Now we must achieve economic growth that is accompanied by significantly less poverty and greater prosperity for all the people of the continent. With new discoveries of oil, gas, and minerals seemingly every month, we need to be able to extract, market, and invest the new-found earnings from these resources in higher quality education, health, and other vital development priorities. ","content_1000":" Africa has achieved exceptional economic growth over the past decade, averaging 4.5 percent a year and underpinned by prudent macroeconomic management.  Now we must achieve economic growth that is accompanied by significantly less poverty and greater prosperity for all the people of the continent. With new discoveries of oil, gas, and minerals seemingly every month, we need to be able to extract, market, and invest the new-found earnings from these resources in higher quality education, health, and other vital development priorities. ","displayconttype":"Opinion","featured_img":"http://www.worldbank.org/content/dam/Worldbank/Feature Story/Africa/afr-op-ed-powering-science-and-technology-for-africas-economic-transformation-520x347.jpg","originating_unit":"Africa, AFR","originating_unit_exact":"Africa, AFR","displayconttype_exact":"Opinion","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Opinion","masterupi":"000112890","node_id":"57efe7a8c72ba06072daec0038a3bc844cd488ab","wn_title":"Op-Ed: Powering Science and Technology for Africa’s Economic Transformation","wn_desc":" Africa has achieved exceptional economic growth over the past decade, averaging 4.5 percent a year and underpinned by prudent macroeconomic management.  Now we must achieve economic growth that is accompanied by significantly less poverty and greater prosperity for all the people of the continent. With new discoveries of oil, gas, and minerals seemingly every month, we need to be able to extract, market, and invest the new-found earnings from these resources in higher quality education, health, and other vital development priorities. ","master_date":"2014-05-20T21:09:00Z","master_date_srt":"2014-05-20T21:09:00Z","master_recent_date_srt":"2014-05-20T21:09:00Z","master_recent_date":"2014-05-20T21:09:00Z","masterregion_exact":"Africa","short_description":"\"This new generation of young Africans must be equipped with the modern skills and knowledge they need to find African solutions to Africa’s challenges.\" - Makhtar Diop","masterconttype_exact":"Opinion","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":" Africa has achieved exceptional economic growth over the past decade, averaging 4.5 percent a year and underpinned by prudent macroeconomic management.  Now we must achieve economic growth that is accompanied by significantly less poverty and greater prosperity for all the people of the continent. With new discoveries of oil, gas, and minerals seemingly every month, we need to be able to extract, market, and invest the new-found earnings from these resources in higher quality education, health, and other vital development priorities. ","date":"2014-05-20T21:09:00Z","contenttype":"Opinion"},"_89bf09f13410411aed443589dda103e0ea668e85":{"id":"89bf09f13410411aed443589dda103e0ea668e85","title":"Africa Innovate: Celebrating Successes and Addressing Challenges","countrycode":"MG","country":"Madagascar","country_exact":"Madagascar","countrycode_exact":"MG","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2014/05/16/lafrique-innove-celebrer-les-reussites-relever-les-defis","count":"Madagascar","descr":"Africa Innovate: Celebrating Successes and Addressing Challenges, a speech by Makhtar Diop, World Bank Vice President for the Africa Region at the University of Antananarivo, Madagascar","keywd":"subject:macroeconomic and structural policies,country:Madagascar,subject:innovation technology and entrepreneurship,regions:Africa","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","topic":"Macroeconomic And Structural Policies,Innovation Technology And Entrepreneurship","cqpath":"/content/wb-home/en/news/speech/2014/05/16/lafrique-innove-celebrer-les-reussites-relever-les-defis","regionname":"Africa","wcmsource":"cq5","content":" I am pleased to be here at the University of Antananarivo. The University and the World Bank have a longstanding partnership and I am delighted to contribute to this partnership through my presence here today. The topic I would like to address is Africa’s innovation and self-transformation process. As your country emerges from a period of crisis, I hope that you will draw inspiration from other African countries that have experienced crises but have also demonstrated, over the past 10 years, that it is possible to change their destiny. I would also like to both celebrate our successes and acknowledge our challenges, and my remarks today will strike this balance. Great success has been achieved in recent years, which we must celebrate.  Understanding the drivers of this success will also help us understand the challenges so that we may better address them. “Recent Successes”  As we all know, Africa’s economies are enjoying a period of unprecedented growth and development. Sub-Saharan Africa, excluding South Africa, grew by more than 6 percent in 2013 (6.1 percent), consolidating more than a decade of growth rates above 5 percent, even taking into account the slight drop in 2009 because of the global crisis. Growth on the continent reflects an important structural trend in African economies. Nigeria recently revised its GDP, which now stands at more than US$500 billion, surpassing South Africa and becoming the biggest economy in Africa. Other African countries such as Ghana and Kenya have also improved their GDP statistics. Other countries will follow suit. These revised figures shed light not only on the size of these economies, but also on their composition. First, services are now a key pillar of the African economy and the extractive industries and agriculture continue to be one of the strongest drivers. However, the role to be played by the manufacturing sector over the next 10 years is still a matter of debate. While the share of the manufacturing sector in overall GDP has increased in some countries such as Nigeria and Ethiopia, it is clearly declining in most other countries.  The role of the manufacturing sector in the development of Africa’s economies is being debated and views on this topic abound.  This has been addressed by economists such as Haussman, Velasco, my colleague Bill Maloney or, more recently, the African Center for Economic Transformation think tank headed by African economists, whose report has just been published.  Among all the views expressed, the common issue is the productivity of African economies. For this reason, we at the World Bank have a renewed interest in higher education, particularly the role of sciences. Currently, only 25 percent of the graduates of African universities have been trained in science, technology, engineering, and math.  Second, the infrastructure deficit, particularly in the energy sector, is also an obstacle that will have to be overcome in order to boost the productivity level of African economies. Consequently, special emphasis has been placed on the infrastructure and energy sectors in World Bank programs currently being implemented in Africa. I would like to return to the subject of the recent development of African economies.  GDP growth in Sub-Saharan Africa is expected to be 5.2 percent in 2014 and 5.4 percent in 2015 and 2016. These growth rates are now the rule rather than the exception in Africa. Why is Africa growing at these rates, when it previously struggled to perform at such a level? We know that part of the reason is linked to trends in commodity prices. In 2000, about half of Africa’s economies were major commodity exporters.  In countries such as Angola, Chad, Equatorial Guinea, Gabon, and Nigeria, more than 92 percent of export earnings, on average, are derived from oil. And in other non-oil producing but resource-rich countries such as Botswana, Guinea, Mauritania, and Sierra Leone, 50 percent of export earnings come from natural resources.  We must therefore acknowledge that Africa has benefitted, in part, from events beyond its control.  But this is only part of the story.  We have also seen improvements in governance and in macroeconomic management, the factors underlying more robust economic growth. Budget deficits have been brought under control in most countries and impressive measures have been adopted to curb inflation. Sub-Saharan Africa is, in fact, performing better than the OECD countries.  In 2013, the average debt of African governments stood at 33.9 percent, compared to a figure of 107.1 percent in developed economies.  This performance has played a key role in developing confidence in African economies and attracting sizeable amounts of foreign direct investment. Improved governance and strengthened macroeconomic management have helped make Africa a destination for foreign investors. Not just short-term flows, but direct investment that is flowing in because investors believe that African economies will continue to grow in the years ahead. Financial uncertainty and deleveraging in the Eurozone drove down private capital flows to developing countries by about 9 percent in 2012. However, that same year, private inflows to Africa increased by more than 3 percent and reached a record high of US$55 billion. African public debt is increasingly viewed by investors as an asset class that can offer robust returns and, at the same time, risk diversification by moving away from developed country financial markets. And as governments provide greater stability, international investors are turning to the African private sector. Foreign direct investment is expected to remain strong. FDI in Africa increased by 16 percent in 2013, climbing to US$43 billion. FDI in Africa is forecast to reach $56 billion by 2015. And while the extractive industries dominate, their importance in productive investments is declining, reflecting increasing services investments, especially in banking, transportation, telecommunications, and water. This augurs very well for long-term confidence in Africa’s economies and has also been the third main driver of Africa’s improved performance in the last decade, along with rising commodity prices and improved economic management. Foreign savings have augmented Africa’s own, quite low, savings levels. Domestic investment has also posted solid increases in recent years.  All these factors have helped fund an investment boom in Africa.  And we expect this trend to continue. “Addressing the Challenges” So ... will this performance continue? And how can we strengthen it further? At the World Bank, our analysis of Africa’s growth prospects points mostly to positive signs and suggests that Africa should continue to grow at about 6 percent a year, excluding South Africa, where growth prospects are unfortunately more moderate (in the 3 percent range). Perhaps more importantly, some of the dark clouds on the horizon of the global economy—such as Eurozone fiscal concerns or the possibility of a slowdown of China’s very rapid recent growth—may not rain too much on Africa’s parade.  Why do I say this? The Bank has conducted an analysis of alternative “negative shock” scenarios modeling the world economy and Africa’s place in it using competitive general equilibrium techniques. The impact of a credit squeeze in the Eurozone economies is estimated at 1 percent of growth in Africa. Another scenario models a sudden change of direction of Chinese investment and thus world growth and commodity prices. This could cool commodity markets and prices and although the discovery of new mining deposits may cushion this effect, it is still something for us to watch. Still, our modeling actually suggests that this transmission channel would have a somewhat less severe impact on Africa. All told, while these scenarios capture downside risk, they do not come anywhere close to spelling disaster.  Of course, Africa faces specific risks and challenges.  However, a very real opportunity exists to take Africa’s economic performance to another level and create a true African transformation. Let me mention a number of African risks, and then present to you the more optimistic picture. “Mitigating Risks” Conflicts.  Recent events in Mali have shown how quickly regional instability can affect one of our economies. Mali’s growth rate was 5.8 percent in 2010. In 2011, its country policies and institutions were rated by the Bank as significantly stronger than the regional average. Yet in January 2012, Mali fell victim to forces beyond its own control and its economy is still trying to regain its footing. Yet the fragility of our African countries is not always reflected in violent conflict. As you are well aware, this fragility can also be seen in profound political instability. From the time of its independence, Madagascar has experienced cyclical political crises. Since the end of the 1980s, these political crises have been preceded by periods of accelerated economic growth.  Based on the experience of other countries, it is clear that economic growth in and of itself does not fuel political crises. However, in the case of Madagascar, these two phenomena appear to be linked. How can we, public and private sector actors in Africa, minimize these crisis risks that are derailing progress? Partly by ensuring that growth is shared across population groups and regions.  It cannot be appropriated by a single group. This can be achieved in particular through improved basic infrastructure, health, education, and social services in the least developed regions.  In the Sahel region, for example, solutions relating to increased agricultural productivity are also being provided to help build resilience to desertification and increased climate volatility. A significant share of the World Bank’s lending portfolio seeks to promote just that, by supporting infrastructure, agriculture, and innovative service delivery models for education, health, and social safety nets. A second approach to reducing fragility and conflict is responding quickly and effectively to the threat of conflict. The 2011 World Development Report, which focused on fragile and post-conflict situations, underscores the importance of responding promptly to restore confidence and focusing on strengthening institutions that provide citizen security, justice, and employment, with a particular focus on young people.  The Bank opened a new country office in Nairobi, which seeks to adapt our development solutions to fragile and post-conflict environments, building on the analysis of the World Development Report, among others. A second risk is related to the energy sector, Africa’s biggest infrastructure bottleneck.  The energy issue must be promptly and adequately addressed to prevent it from becoming an even greater obstacle to progress on the continent than it currently is. A recent study of a number of African countries estimated the economic cost of power outages at over 5 percent of GDP per year in all of these countries. Thirty countries in Africa experience regular power cuts. Africa has approximately 80 GW of installed generation capacity. It also has 45 GW and 15 GW of hydropower and geothermal potential, respectively, as well as significant natural gas reserves, and, for the longer term, tremendous wind and solar potential. The challenge, therefore, is to foster and harness private investment, with a view to boosting current levels that are generating a mere 1 to 2 GW of additional capacity each year, although more than 6 to 7 GW are required. Based on current projections, fewer than 60 percent of Africans will have electricity in their homes by 2030, while estimates of unmet investment needs stand at over US$40 billion per year. Private sector investments in Africa account for 1 percent of total investments in developing countries. This is clearly inadequate. To ensure greater investment, we need to focus on regulatory obstacles, the performance of state-owned enterprises and innovative financing, incorporating guarantees and other characteristics in order to increase private investment. A third challenge pertains to the issues of the capacity of fiscal institutions and lack of transparency, which, if not addressed, could imperil gains made. A number of countries have experienced strong growth, 8 percent in some cases over the past decade, almost doubling the size of these economies. However, these countries have not been able to achieve poverty reduction, an even more daunting challenge in countries whose growth is dependent on commodities. Three factors should be noted:Transparency in the accounting of oil revenue in State and federal state budgets.Avoidance of boom-bust cycles exacerbated by pro-cyclical budgetary spending.Increase in pro-poor spending (for example, by reducing oil subsidies for the wealthiest in favor of direct transfer payments targeting the poorest). Of course, none of these policies can be easily implemented, an undertaking that is even more difficult when they are taken together. However, as difficult as this may be, this is the way forward for many of our countries. We must be clear about a persistent threat: some African countries could squander their natural resource wealth, thereby creating, as has happened in the past, a legacy of debt rather than of assets. Debt relief coupled with natural resource revenues—current or future—has made a considerable number of governments in African countries more creditworthy than ever before. However, this also creates risks and the need for prudent economic management. A recent analysis conducted by the Bank revealed that eight African countries that benefited from the Heavily Indebted Poor Countries (HIPC) and Multilateral Debt Relief initiatives increased their public debt-to-GDP ratio to one-third of pre-relief levels in just four years. Others did even better. The main challenge here, therefore, is to strengthen national institutions so as to avoid the pitfalls of uncontrolled and underproductive public spending. “The keys to a true transformation” If Africa can mitigate the three main risks that I discussed—conflict, key infrastructure constraints, and fiscal transparency—there will be an opportunity for an even deeper transformation than we witnessed during the past 10 years. Let me tell you why I am confident this will happen. First, we are seeing greater political accountability.  There are many positive examples of democratic political transitions in Africa in recent years: the recent peaceful democratic transition in Ghana, Sierra Leone’s solid performance as well according to all international observers, and my own country Senegal. This is increasingly becoming the rule rather than the exception in Africa, and, from an economic standpoint, all the benefits have not yet been felt. Second, Africa has yet to reap the benefits of its youth population structure and the emergence of a new and powerful middle class. In 2015, 61 percent of Africans will be under 25, a figure that will fall to 56 percent by 2035. This is a tremendous opportunity for growth, given that these young population groups are entering their productive years. In South Asia, however, the reverse is happening—48 percent of the population will be under 25 in 2015, but this rate will fall to 39 percent by 2035, thus placing a heavier burden on young people to support an older population. This demographic phenomenon underscores the need to ensure that young people receive not just an education but an education that is of a better quality and more suited to labor market needs than what is currently provided in the majority of our countries. The emergence in recent years of a large middle class in many African societies is equally important, because this means that African businesses must not only export but can also produce for their burgeoning domestic markets. In other countries such as Brazil, this phenomenon has been a driver not only of growth, but also of fundamental societal transformation. This also underscores another opportunity—the economic integration of Africa. A recent World Bank report entitled “De-fragmenting Africa” revealed the continent’s huge potential once tariff and non-tariff barriers in Africa are removed.  The incidence of these barriers falls most heavily on the poor and on women, and prevents countries from taking advantage of opportunities to diversify exports away from a narrow range of primary products. Regional trade can play a key role in creating jobs that are needed for Africa’s young populations. Conclusion  In closing, I would like to return to the issue raised at the beginning, namely the role of natural resources in Africa’s resurgence. While some may present this factor as a potential constraint, we can examine the role of natural resources in a different way. New mapping technology is now making it possible to generate a far more accurate image of underground mineral resources. Initial findings from the most recently conducted surveys suggest that we may be using a mere one-tenth of Africa’s total oil and mineral resources.  In other words, today’s engine of growth may prove to be an engine of growth for decades to come. This will also create new challenges.  We must convert these resources into human capital, jobs, opportunities, and well-being for Africa’s populations. The World Bank is therefore focusing much of its efforts on building country capacity in order to allow these countries to benefit from improved use of natural resources, negotiate with exploration companies (we have a new fund specifically for that purpose), through  transparency initiatives such as EITI,  and implement fair and effective social safety nets. So if African governments continue to strengthen governance for the benefit of their people, if we can take advantage of the demographic transition to strengthen education and training programs and create jobs through economic growth, we have the prospect of a stronger Africa that can not only trade with the rest of the world, but also within the African continent. This would represent a new phase of development in Africa, new opportunities for African investors, and a true transformation of Africa. Misaotra (Thank You). ","content_1000":" I am pleased to be here at the University of Antananarivo. The University and the World Bank have a longstanding partnership and I am delighted to contribute to this partnership through my presence here today. The topic I would like to address is Africa’s innovation and self-transformation process. As your country emerges from a period of crisis, I hope that you will draw inspiration from other African countries that have experienced crises but have also demonstrated, over the past 10 years, that it is possible to change their destiny. I would also like to both celebrate our successes and acknowledge our challenges, and my remarks today will strike this balance. Great success has been achieved in recent years, which we must celebrate.  Understanding the drivers of this success will also help us understand the challenges so that we may better address them. “Recent Successes”  As we all know, Africa’s economies are enjoying a period of unprecedented growth and development. Sub","displayconttype":"Speeches and Transcripts","originating_unit":"Africa, AFR","originating_unit_exact":"Africa, AFR","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Speeches and Transcripts","node_id":"89bf09f13410411aed443589dda103e0ea668e85","wn_title":"Africa Innovate: Celebrating Successes and Addressing Challenges","wn_desc":" I am pleased to be here at the University of Antananarivo. The University and the World Bank have a longstanding partnership and I am delighted to contribute to this partnership through my presence here today. The topic I would like to address is Africa’s innovation and self-transformation process. As your country emerges from a period of crisis, I hope that you will draw inspiration from other African countries that have experienced crises but have also demonstrated, over the past 10 years, that it is possible to change their destiny. I would also like to both celebrate our successes and acknowledge our challenges, and my remarks today will strike this balance. Great success has been achieved in recent years, which we must celebrate.  Understanding the drivers of this success will also help us understand the challenges so that we may better address them. “Recent Successes”  As we all know, Africa’s economies are enjoying a period of unprecedented growth and development. Sub-Saharan Africa, excluding South Africa, grew by more than 6 percent in 2013 (6.1 percent), consolidating more than a decade of growth rates above 5 percent, even taking into account the slight drop in 2009 because of the global crisis. Growth on the continent reflects an important structural trend in African economies. Nigeria recently revised its GDP, which now stands at more than US$500 billion, surpassing South Africa and becoming the biggest economy in Africa. Other African countries such as Ghana and Kenya have also improved their GDP statistics. Other countries will follow suit. These revised figures shed light not only on the size of these economies, but also on their composition. First, services are now a key pillar of the African economy and the extractive industries and agriculture continue to be one of the strongest drivers. However, the role to be played by the manufacturing sector over the next 10 years is still a matter of debate. While the share of the manufacturing sector in overall GDP has increased in some countries such as Nigeria and Ethiopia, it is clearly declining in most other countries.  The role of the manufacturing sector in the development of Africa’s economies is being debated and views on this topic abound.  This has been addressed by economists such as Haussman, Velasco, my colleague Bill Maloney or, more recently, the African Center for Economic Transformation think tank headed by African economists, whose report has just been published.  Among all the views expressed, the common issue is the productivity of African economies. For this reason, we at the World Bank have a renewed interest in higher education, particularly the role of sciences. Currently, only 25 percent of the graduates of African universities have been trained in science, technology, engineering, and math.  Second, the infrastructure deficit, particularly in the energy sector, is also an obstacle that will have to be overcome in order to boost the productivity level of African economies. Consequently, special emphasis has been placed on the infrastructure and energy sectors in World Bank programs currently being implemented in Africa. I would like to return to the subject of the recent development of African economies.  GDP growth in Sub-Saharan Africa is expected to be 5.2 percent in 2014 and 5.4 percent in 2015 and 2016. These growth rates are now the rule rather than the exception in Africa. Why is Africa growing at these rates, when it previously struggled to perform at such a level? We know that part of the reason is linked to trends in commodity prices. In 2000, about half of Africa’s economies were major commodity exporters.  In countries such as Angola, Chad, Equatorial Guinea, Gabon, and Nigeria, more than 92 percent of export earnings, on average, are derived from oil. And in other non-oil producing but resource-rich countries such as Botswana, Guinea, Mauritania, and Sierra Leone, 50 percent of export earnings come from natural resources.  We must therefore acknowledge that Africa has benefitted, in part, from events beyond its control.  But this is only part of the story.  We have also seen improvements in governance and in macroeconomic management, the factors underlying more robust economic growth. Budget deficits have been brought under control in most countries and impressive measures have been adopted to curb inflation. Sub-Saharan Africa is, in fact, performing better than the OECD countries.  In 2013, the average debt of African governments stood at 33.9 percent, compared to a figure of 107.1 percent in developed economies.  This performance has played a key role in developing confidence in African economies and attracting sizeable amounts of foreign direct investment. Improved governance and strengthened macroeconomic management have helped make Africa a destination for foreign investors. Not just short-term flows, but direct investment that is flowing in because investors believe that African economies will continue to grow in the years ahead. Financial uncertainty and deleveraging in the Eurozone drove down private capital flows to developing countries by about 9 percent in 2012. However, that same year, private inflows to Africa increased by more than 3 percent and reached a record high of US$55 billion. African public debt is increasingly viewed by investors as an asset class that can offer robust returns and, at the same time, risk diversification by moving away from developed country financial markets. And as governments provide greater stability, international investors are turning to the African private sector. Foreign direct investment is expected to remain strong. FDI in Africa increased by 16 percent in 2013, climbing to US$43 billion. FDI in Africa is forecast to reach $56 billion by 2015. And while the extractive industries dominate, their importance in productive investments is declining, reflecting increasing services investments, especially in banking, transportation, telecommunications, and water. This augurs very well for long-term confidence in Africa’s economies and has also been the third main driver of Africa’s improved performance in the last decade, along with rising commodity prices and improved economic management. Foreign savings have augmented Africa’s own, quite low, savings levels. Domestic investment has also posted solid increases in recent years.  All these factors have helped fund an investment boom in Africa.  And we expect this trend to continue. “Addressing the Challenges” So ... will this performance continue? And how can we strengthen it further? At the World Bank, our analysis of Africa’s growth prospects points mostly to positive signs and suggests that Africa should continue to grow at about 6 percent a year, excluding South Africa, where growth prospects are unfortunately more moderate (in the 3 percent range). Perhaps more importantly, some of the dark clouds on the horizon of the global economy—such as Eurozone fiscal concerns or the possibility of a slowdown of China’s very rapid recent growth—may not rain too much on Africa’s parade.  Why do I say this? The Bank has conducted an analysis of alternative “negative shock” scenarios modeling the world economy and Africa’s place in it using competitive general equilibrium techniques. The impact of a credit squeeze in the Eurozone economies is estimated at 1 percent of growth in Africa. Another scenario models a sudden change of direction of Chinese investment and thus world growth and commodity prices. This could cool commodity markets and prices and although the discovery of new mining deposits may cushion this effect, it is still something for us to watch. Still, our modeling actually suggests that this transmission channel would have a somewhat less severe impact on Africa. All told, while these scenarios capture downside risk, they do not come anywhere close to spelling disaster.  Of course, Africa faces specific risks and challenges.  However, a very real opportunity exists to take Africa’s economic performance to another level and create a true African transformation. Let me mention a number of African risks, and then present to you the more optimistic picture. “Mitigating Risks” Conflicts.  Recent events in Mali have shown how quickly regional instability can affect one of our economies. Mali’s growth rate was 5.8 percent in 2010. In 2011, its country policies and institutions were rated by the Bank as significantly stronger than the regional average. Yet in January 2012, Mali fell victim to forces beyond its own control and its economy is still trying to regain its footing. Yet the fragility of our African countries is not always reflected in violent conflict. As you are well aware, this fragility can also be seen in profound political instability. From the time of its independence, Madagascar has experienced cyclical political crises. Since the end of the 1980s, these political crises have been preceded by periods of accelerated economic growth.  Based on the experience of other countries, it is clear that economic growth in and of itself does not fuel political crises. However, in the case of Madagascar, these two phenomena appear to be linked. How can we, public and private sector actors in Africa, minimize these crisis risks that are derailing progress? Partly by ensuring that growth is shared across population groups and regions.  It cannot be appropriated by a single group. This can be achieved in particular through improved basic infrastructure, health, education, and social services in the least developed regions.  In the Sahel region, for example, solutions relating to increased agricultural productivity are also being provided to help build resilience to desertification and increased climate volatility. A significant share of the World Bank’s lending portfolio seeks to promote just that, by supporting infrastructure, agriculture, and innovative service delivery models for education, health, and social safety nets. A second approach to reducing fragility and conflict is responding quickly and effectively to the threat of conflict. The 2011 World Development Report, which focused on fragile and post-conflict situations, underscores the importance of responding promptly to restore confidence and focusing on strengthening institutions that provide citizen security, justice, and employment, with a particular focus on young people.  The Bank opened a new country office in Nairobi, which seeks to adapt our development solutions to fragile and post-conflict environments, building on the analysis of the World Development Report, among others. A second risk is related to the energy sector, Africa’s biggest infrastructure bottleneck.  The energy issue must be promptly and adequately addressed to prevent it from becoming an even greater obstacle to progress on the continent than it currently is. A recent study of a number of African countries estimated the economic cost of power outages at over 5 percent of GDP per year in all of these countries. Thirty countries in Africa experience regular power cuts. Africa has approximately 80 GW of installed generation capacity. It also has 45 GW and 15 GW of hydropower and geothermal potential, respectively, as well as significant natural gas reserves, and, for the longer term, tremendous wind and solar potential. The challenge, therefore, is to foster and harness private investment, with a view to boosting current levels that are generating a mere 1 to 2 GW of additional capacity each year, although more than 6 to 7 GW are required. Based on current projections, fewer than 60 percent of Africans will have electricity in their homes by 2030, while estimates of unmet investment needs stand at over US$40 billion per year. Private sector investments in Africa account for 1 percent of total investments in developing countries. This is clearly inadequate. To ensure greater investment, we need to focus on regulatory obstacles, the performance of state-owned enterprises and innovative financing, incorporating guarantees and other characteristics in order to increase private investment. A third challenge pertains to the issues of the capacity of fiscal institutions and lack of transparency, which, if not addressed, could imperil gains made. A number of countries have experienced strong growth, 8 percent in some cases over the past decade, almost doubling the size of these economies. However, these countries have not been able to achieve poverty reduction, an even more daunting challenge in countries whose growth is dependent on commodities. Three factors should be noted:Transparency in the accounting of oil revenue in State and federal state budgets.Avoidance of boom-bust cycles exacerbated by pro-cyclical budgetary spending.Increase in pro-poor spending (for example, by reducing oil subsidies for the wealthiest in favor of direct transfer payments targeting the poorest). Of course, none of these policies can be easily implemented, an undertaking that is even more difficult when they are taken together. However, as difficult as this may be, this is the way forward for many of our countries. We must be clear about a persistent threat: some African countries could squander their natural resource wealth, thereby creating, as has happened in the past, a legacy of debt rather than of assets. Debt relief coupled with natural resource revenues—current or future—has made a considerable number of governments in African countries more creditworthy than ever before. However, this also creates risks and the need for prudent economic management. A recent analysis conducted by the Bank revealed that eight African countries that benefited from the Heavily Indebted Poor Countries (HIPC) and Multilateral Debt Relief initiatives increased their public debt-to-GDP ratio to one-third of pre-relief levels in just four years. Others did even better. The main challenge here, therefore, is to strengthen national institutions so as to avoid the pitfalls of uncontrolled and underproductive public spending. “The keys to a true transformation” If Africa can mitigate the three main risks that I discussed—conflict, key infrastructure constraints, and fiscal transparency—there will be an opportunity for an even deeper transformation than we witnessed during the past 10 years. Let me tell you why I am confident this will happen. First, we are seeing greater political accountability.  There are many positive examples of democratic political transitions in Africa in recent years: the recent peaceful democratic transition in Ghana, Sierra Leone’s solid performance as well according to all international observers, and my own country Senegal. This is increasingly becoming the rule rather than the exception in Africa, and, from an economic standpoint, all the benefits have not yet been felt. Second, Africa has yet to reap the benefits of its youth population structure and the emergence of a new and powerful middle class. In 2015, 61 percent of Africans will be under 25, a figure that will fall to 56 percent by 2035. This is a tremendous opportunity for growth, given that these young population groups are entering their productive years. In South Asia, however, the reverse is happening—48 percent of the population will be under 25 in 2015, but this rate will fall to 39 percent by 2035, thus placing a heavier burden on young people to support an older population. This demographic phenomenon underscores the need to ensure that young people receive not just an education but an education that is of a better quality and more suited to labor market needs than what is currently provided in the majority of our countries. The emergence in recent years of a large middle class in many African societies is equally important, because this means that African businesses must not only export but can also produce for their burgeoning domestic markets. In other countries such as Brazil, this phenomenon has been a driver not only of growth, but also of fundamental societal transformation. This also underscores another opportunity—the economic integration of Africa. A recent World Bank report entitled “De-fragmenting Africa” revealed the continent’s huge potential once tariff and non-tariff barriers in Africa are removed.  The incidence of these barriers falls most heavily on the poor and on women, and prevents countries from taking advantage of opportunities to diversify exports away from a narrow range of primary products. Regional trade can play a key role in creating jobs that are needed for Africa’s young populations. Conclusion  In closing, I would like to return to the issue raised at the beginning, namely the role of natural resources in Africa’s resurgence. While some may present this factor as a potential constraint, we can examine the role of natural resources in a different way. New mapping technology is now making it possible to generate a far more accurate image of underground mineral resources. Initial findings from the most recently conducted surveys suggest that we may be using a mere one-tenth of Africa’s total oil and mineral resources.  In other words, today’s engine of growth may prove to be an engine of growth for decades to come. This will also create new challenges.  We must convert these resources into human capital, jobs, opportunities, and well-being for Africa’s populations. The World Bank is therefore focusing much of its efforts on building country capacity in order to allow these countries to benefit from improved use of natural resources, negotiate with exploration companies (we have a new fund specifically for that purpose), through  transparency initiatives such as EITI,  and implement fair and effective social safety nets. So if African governments continue to strengthen governance for the benefit of their people, if we can take advantage of the demographic transition to strengthen education and training programs and create jobs through economic growth, we have the prospect of a stronger Africa that can not only trade with the rest of the world, but also within the African continent. This would represent a new phase of development in Africa, new opportunities for African investors, and a true transformation of Africa. Misaotra (Thank You). ","master_date":"2014-05-16T08:32:00Z","master_date_srt":"2014-05-16T08:32:00Z","master_recent_date_srt":"2014-05-16T08:32:00Z","master_recent_date":"2014-05-16T08:32:00Z","masterregion_exact":"Africa","short_description":"Africa Innovate: Celebrating Successes and Addressing Challenges, a speech by Makhtar Diop, World Bank Vice President for the Africa Region at the University of Antananarivo, Madagascar","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":" I am pleased to be here at the University of Antananarivo. The University and the World Bank have a longstanding partnership and I am delighted to contribute to this partnership through my presence here today. The topic I would like to address is Africa’s innovation and self-transformation process. As your country emerges from a period of crisis, I hope that you will draw inspiration from other African countries that have experienced crises but have also demonstrated, over the past 10 years, that it is possible to change their destiny. I would also like to both celebrate our successes and acknowledge our challenges, and my remarks today will strike this balance. Great success has been achieved in recent years, which we must celebrate.  Understanding the drivers of this success will also help us understand the challenges so that we may better address them. “Recent Successes”  As we all know, Africa’s economies are enjoying a period of unprecedented growth and development. Sub-Saharan Africa, excluding South Africa, grew by more than 6 percent in 2013 (6.1 percent), consolidating more than a decade of growth rates above 5 percent, even taking into account the slight drop in 2009 because of the global crisis. Growth on the continent reflects an important structural trend in African economies. Nigeria recently revised its GDP, which now stands at more than US$500 billion, surpassing South Africa and becoming the biggest economy in Africa. Other African countries such as Ghana and Kenya have also improved their GDP statistics. Other countries will follow suit. These revised figures shed light not only on the size of these economies, but also on their composition. First, services are now a key pillar of the African economy and the extractive industries and agriculture continue to be one of the strongest drivers. However, the role to be played by the manufacturing sector over the next 10 years is still a matter of debate. While the share of the manufacturing sector in overall GDP has increased in some countries such as Nigeria and Ethiopia, it is clearly declining in most other countries.  The role of the manufacturing sector in the development of Africa’s economies is being debated and views on this topic abound.  This has been addressed by economists such as Haussman, Velasco, my colleague Bill Maloney or, more recently, the African Center for Economic Transformation think tank headed by African economists, whose report has just been published.  Among all the views expressed, the common issue is the productivity of African economies. For this reason, we at the World Bank have a renewed interest in higher education, particularly the role of sciences. Currently, only 25 percent of the graduates of African universities have been trained in science, technology, engineering, and math.  Second, the infrastructure deficit, particularly in the energy sector, is also an obstacle that will have to be overcome in order to boost the productivity level of African economies. Consequently, special emphasis has been placed on the infrastructure and energy sectors in World Bank programs currently being implemented in Africa. I would like to return to the subject of the recent development of African economies.  GDP growth in Sub-Saharan Africa is expected to be 5.2 percent in 2014 and 5.4 percent in 2015 and 2016. These growth rates are now the rule rather than the exception in Africa. Why is Africa growing at these rates, when it previously struggled to perform at such a level? We know that part of the reason is linked to trends in commodity prices. In 2000, about half of Africa’s economies were major commodity exporters.  In countries such as Angola, Chad, Equatorial Guinea, Gabon, and Nigeria, more than 92 percent of export earnings, on average, are derived from oil. And in other non-oil producing but resource-rich countries such as Botswana, Guinea, Mauritania, and Sierra Leone, 50 percent of export earnings come from natural resources.  We must therefore acknowledge that Africa has benefitted, in part, from events beyond its control.  But this is only part of the story.  We have also seen improvements in governance and in macroeconomic management, the factors underlying more robust economic growth. Budget deficits have been brought under control in most countries and impressive measures have been adopted to curb inflation. Sub-Saharan Africa is, in fact, performing better than the OECD countries.  In 2013, the average debt of African governments stood at 33.9 percent, compared to a figure of 107.1 percent in developed economies.  This performance has played a key role in developing confidence in African economies and attracting sizeable amounts of foreign direct investment. Improved governance and strengthened macroeconomic management have helped make Africa a destination for foreign investors. Not just short-term flows, but direct investment that is flowing in because investors believe that African economies will continue to grow in the years ahead. Financial uncertainty and deleveraging in the Eurozone drove down private capital flows to developing countries by about 9 percent in 2012. However, that same year, private inflows to Africa increased by more than 3 percent and reached a record high of US$55 billion. African public debt is increasingly viewed by investors as an asset class that can offer robust returns and, at the same time, risk diversification by moving away from developed country financial markets. And as governments provide greater stability, international investors are turning to the African private sector. Foreign direct investment is expected to remain strong. FDI in Africa increased by 16 percent in 2013, climbing to US$43 billion. FDI in Africa is forecast to reach $56 billion by 2015. And while the extractive industries dominate, their importance in productive investments is declining, reflecting increasing services investments, especially in banking, transportation, telecommunications, and water. This augurs very well for long-term confidence in Africa’s economies and has also been the third main driver of Africa’s improved performance in the last decade, along with rising commodity prices and improved economic management. Foreign savings have augmented Africa’s own, quite low, savings levels. Domestic investment has also posted solid increases in recent years.  All these factors have helped fund an investment boom in Africa.  And we expect this trend to continue. “Addressing the Challenges” So ... will this performance continue? And how can we strengthen it further? At the World Bank, our analysis of Africa’s growth prospects points mostly to positive signs and suggests that Africa should continue to grow at about 6 percent a year, excluding South Africa, where growth prospects are unfortunately more moderate (in the 3 percent range). Perhaps more importantly, some of the dark clouds on the horizon of the global economy—such as Eurozone fiscal concerns or the possibility of a slowdown of China’s very rapid recent growth—may not rain too much on Africa’s parade.  Why do I say this? The Bank has conducted an analysis of alternative “negative shock” scenarios modeling the world economy and Africa’s place in it using competitive general equilibrium techniques. The impact of a credit squeeze in the Eurozone economies is estimated at 1 percent of growth in Africa. Another scenario models a sudden change of direction of Chinese investment and thus world growth and commodity prices. This could cool commodity markets and prices and although the discovery of new mining deposits may cushion this effect, it is still something for us to watch. Still, our modeling actually suggests that this transmission channel would have a somewhat less severe impact on Africa. All told, while these scenarios capture downside risk, they do not come anywhere close to spelling disaster.  Of course, Africa faces specific risks and challenges.  However, a very real opportunity exists to take Africa’s economic performance to another level and create a true African transformation. Let me mention a number of African risks, and then present to you the more optimistic picture. “Mitigating Risks” Conflicts.  Recent events in Mali have shown how quickly regional instability can affect one of our economies. Mali’s growth rate was 5.8 percent in 2010. In 2011, its country policies and institutions were rated by the Bank as significantly stronger than the regional average. Yet in January 2012, Mali fell victim to forces beyond its own control and its economy is still trying to regain its footing. Yet the fragility of our African countries is not always reflected in violent conflict. As you are well aware, this fragility can also be seen in profound political instability. From the time of its independence, Madagascar has experienced cyclical political crises. Since the end of the 1980s, these political crises have been preceded by periods of accelerated economic growth.  Based on the experience of other countries, it is clear that economic growth in and of itself does not fuel political crises. However, in the case of Madagascar, these two phenomena appear to be linked. How can we, public and private sector actors in Africa, minimize these crisis risks that are derailing progress? Partly by ensuring that growth is shared across population groups and regions.  It cannot be appropriated by a single group. This can be achieved in particular through improved basic infrastructure, health, education, and social services in the least developed regions.  In the Sahel region, for example, solutions relating to increased agricultural productivity are also being provided to help build resilience to desertification and increased climate volatility. A significant share of the World Bank’s lending portfolio seeks to promote just that, by supporting infrastructure, agriculture, and innovative service delivery models for education, health, and social safety nets. A second approach to reducing fragility and conflict is responding quickly and effectively to the threat of conflict. The 2011 World Development Report, which focused on fragile and post-conflict situations, underscores the importance of responding promptly to restore confidence and focusing on strengthening institutions that provide citizen security, justice, and employment, with a particular focus on young people.  The Bank opened a new country office in Nairobi, which seeks to adapt our development solutions to fragile and post-conflict environments, building on the analysis of the World Development Report, among others. A second risk is related to the energy sector, Africa’s biggest infrastructure bottleneck.  The energy issue must be promptly and adequately addressed to prevent it from becoming an even greater obstacle to progress on the continent than it currently is. A recent study of a number of African countries estimated the economic cost of power outages at over 5 percent of GDP per year in all of these countries. Thirty countries in Africa experience regular power cuts. Africa has approximately 80 GW of installed generation capacity. It also has 45 GW and 15 GW of hydropower and geothermal potential, respectively, as well as significant natural gas reserves, and, for the longer term, tremendous wind and solar potential. The challenge, therefore, is to foster and harness private investment, with a view to boosting current levels that are generating a mere 1 to 2 GW of additional capacity each year, although more than 6 to 7 GW are required. Based on current projections, fewer than 60 percent of Africans will have electricity in their homes by 2030, while estimates of unmet investment needs stand at over US$40 billion per year. Private sector investments in Africa account for 1 percent of total investments in developing countries. This is clearly inadequate. To ensure greater investment, we need to focus on regulatory obstacles, the performance of state-owned enterprises and innovative financing, incorporating guarantees and other characteristics in order to increase private investment. A third challenge pertains to the issues of the capacity of fiscal institutions and lack of transparency, which, if not addressed, could imperil gains made. A number of countries have experienced strong growth, 8 percent in some cases over the past decade, almost doubling the size of these economies. However, these countries have not been able to achieve poverty reduction, an even more daunting challenge in countries whose growth is dependent on commodities. Three factors should be noted:Transparency in the accounting of oil revenue in State and federal state budgets.Avoidance of boom-bust cycles exacerbated by pro-cyclical budgetary spending.Increase in pro-poor spending (for example, by reducing oil subsidies for the wealthiest in favor of direct transfer payments targeting the poorest). Of course, none of these policies can be easily implemented, an undertaking that is even more difficult when they are taken together. However, as difficult as this may be, this is the way forward for many of our countries. We must be clear about a persistent threat: some African countries could squander their natural resource wealth, thereby creating, as has happened in the past, a legacy of debt rather than of assets. Debt relief coupled with natural resource revenues—current or future—has made a considerable number of governments in African countries more creditworthy than ever before. However, this also creates risks and the need for prudent economic management. A recent analysis conducted by the Bank revealed that eight African countries that benefited from the Heavily Indebted Poor Countries (HIPC) and Multilateral Debt Relief initiatives increased their public debt-to-GDP ratio to one-third of pre-relief levels in just four years. Others did even better. The main challenge here, therefore, is to strengthen national institutions so as to avoid the pitfalls of uncontrolled and underproductive public spending. “The keys to a true transformation” If Africa can mitigate the three main risks that I discussed—conflict, key infrastructure constraints, and fiscal transparency—there will be an opportunity for an even deeper transformation than we witnessed during the past 10 years. Let me tell you why I am confident this will happen. First, we are seeing greater political accountability.  There are many positive examples of democratic political transitions in Africa in recent years: the recent peaceful democratic transition in Ghana, Sierra Leone’s solid performance as well according to all international observers, and my own country Senegal. This is increasingly becoming the rule rather than the exception in Africa, and, from an economic standpoint, all the benefits have not yet been felt. Second, Africa has yet to reap the benefits of its youth population structure and the emergence of a new and powerful middle class. In 2015, 61 percent of Africans will be under 25, a figure that will fall to 56 percent by 2035. This is a tremendous opportunity for growth, given that these young population groups are entering their productive years. In South Asia, however, the reverse is happening—48 percent of the population will be under 25 in 2015, but this rate will fall to 39 percent by 2035, thus placing a heavier burden on young people to support an older population. This demographic phenomenon underscores the need to ensure that young people receive not just an education but an education that is of a better quality and more suited to labor market needs than what is currently provided in the majority of our countries. The emergence in recent years of a large middle class in many African societies is equally important, because this means that African businesses must not only export but can also produce for their burgeoning domestic markets. In other countries such as Brazil, this phenomenon has been a driver not only of growth, but also of fundamental societal transformation. This also underscores another opportunity—the economic integration of Africa. A recent World Bank report entitled “De-fragmenting Africa” revealed the continent’s huge potential once tariff and non-tariff barriers in Africa are removed.  The incidence of these barriers falls most heavily on the poor and on women, and prevents countries from taking advantage of opportunities to diversify exports away from a narrow range of primary products. Regional trade can play a key role in creating jobs that are needed for Africa’s young populations. Conclusion  In closing, I would like to return to the issue raised at the beginning, namely the role of natural resources in Africa’s resurgence. While some may present this factor as a potential constraint, we can examine the role of natural resources in a different way. New mapping technology is now making it possible to generate a far more accurate image of underground mineral resources. Initial findings from the most recently conducted surveys suggest that we may be using a mere one-tenth of Africa’s total oil and mineral resources.  In other words, today’s engine of growth may prove to be an engine of growth for decades to come. This will also create new challenges.  We must convert these resources into human capital, jobs, opportunities, and well-being for Africa’s populations. The World Bank is therefore focusing much of its efforts on building country capacity in order to allow these countries to benefit from improved use of natural resources, negotiate with exploration companies (we have a new fund specifically for that purpose), through  transparency initiatives such as EITI,  and implement fair and effective social safety nets. So if African governments continue to strengthen governance for the benefit of their people, if we can take advantage of the demographic transition to strengthen education and training programs and create jobs through economic growth, we have the prospect of a stronger Africa that can not only trade with the rest of the world, but also within the African continent. This would represent a new phase of development in Africa, new opportunities for African investors, and a true transformation of Africa. Misaotra (Thank You). ","date":"2014-05-16T08:32:00Z","contenttype":"Speeches and Transcripts"},"_87f33974d8eb44198469fb0a120f8f6034444c03":{"id":"87f33974d8eb44198469fb0a120f8f6034444c03","title":"The African Gold Rush: 2014 NYU Africa Economic Forum","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2014/04/26/the-african-gold-rush-2014-nyu-africa-economic-forum","descr":"The African Gold Rush: 2014 NYU Africa Economic Forum, Keynote Speech by Makhtar Diop  in New York","keywd":"subject:macroeconomic and structural policies,regions:Africa","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","topic":"Macroeconomic And Structural Policies","cqpath":"/content/wb-home/en/news/speech/2014/04/26/the-african-gold-rush-2014-nyu-africa-economic-forum","regionname":"Africa","wcmsource":"cq5","content":"  ","content_1000":"  ","displayconttype":"Speeches and Transcripts","featured_img":"http://www.worldbank.org/content/dam/Worldbank/Feature Story/Africa/afr-the-african-gold-rush-2014-nyu-africa-economic-forum-01-400x267.jpg","originating_unit":"Africa, AFR","originating_unit_exact":"Africa, AFR","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Speeches and Transcripts","node_id":"87f33974d8eb44198469fb0a120f8f6034444c03","wn_title":"The African Gold Rush: 2014 NYU Africa Economic Forum","wn_desc":"  ","master_date":"2014-04-26T13:23:00Z","master_date_srt":"2014-04-26T13:23:00Z","master_recent_date_srt":"2014-04-26T13:23:00Z","master_recent_date":"2014-04-26T13:23:00Z","masterregion_exact":"Africa","short_description":"The African Gold Rush: 2014 NYU Africa Economic Forum, Keynote Speech by Makhtar Diop  in New York","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":"  ","date":"2014-04-26T13:23:00Z","contenttype":"Speeches and Transcripts"},"_960b62357f7ffad7147f4be803974678d8a2923c":{"id":"960b62357f7ffad7147f4be803974678d8a2923c","title":"Speech by Makhtar Diop at the University of Michigan STEM-Africa Initiative Third Biennial Conference","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2014/04/01/speech-by-makhtar-diop","descr":"Speech by Makhtar Diop at the University of Michigan STEM-Africa Initiative Third Biennial Conference","keywd":"regions:Africa","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","cqpath":"/content/wb-home/en/news/speech/2014/04/01/speech-by-makhtar-diop","regionname":"Africa","wcmsource":"cq5","content":"  ","content_1000":"  ","displayconttype":"Speeches and Transcripts","originating_unit":"Africa, AFR","originating_unit_exact":"Africa, AFR","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Speeches and Transcripts","node_id":"960b62357f7ffad7147f4be803974678d8a2923c","wn_title":"Speech by Makhtar Diop at the University of Michigan STEM-Africa Initiative Third Biennial Conference","wn_desc":"  ","master_date":"2014-04-01T01:28:00Z","master_date_srt":"2014-04-01T01:28:00Z","master_recent_date_srt":"2014-04-01T01:28:00Z","master_recent_date":"2014-04-01T01:28:00Z","masterregion_exact":"Africa","short_description":"Speech by Makhtar Diop at the University of Michigan STEM-Africa Initiative Third Biennial Conference","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":"  ","date":"2014-04-01T01:28:00Z","contenttype":"Speeches and Transcripts"},"_f63727f0dc9921514664b90551d7842fe32f0b67":{"id":"f63727f0dc9921514664b90551d7842fe32f0b67","title":"Speech by Makhtar Diop at the High-level Forum on Higher Education, Science and Technology in Africa","countrycode":"RW","country":"Rwanda","country_exact":"Rwanda","countrycode_exact":"RW","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2014/03/13/speech-by-makhtar-diop-at-the-high-level-forum-on-higher-education-science-and-technology-in-africa","count":"Rwanda","descr":"Speech by Makhtar Diop at the High-level Forum on Higher Education, Science and Technology in Africa","keywd":"subject:science technology and innovation,country:Rwanda,subject:education,subject:innovation technology and entrepreneurship,subject:levels of education,subject:information and communication technologies,regions:Africa","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","topic":"Science Technology And Innovation,Education,Innovation Technology And Entrepreneurship,Levels Of Education,Information And Communication Technologies","cqpath":"/content/wb-home/en/news/speech/2014/03/13/speech-by-makhtar-diop-at-the-high-level-forum-on-higher-education-science-and-technology-in-africa","regionname":"Africa","wcmsource":"cq5","content":" Let me thank you, Mr. Minister, and your Government, for hosting this important event.  I am delighted to see so much enthusiasm, at the highest level of policy-making, for a topic that has been close to my heart for years and that is crucial for Africa’s success in the 21st Century. Higher education is now front and center of the development debate – and with good reason.  More than 50 percent of the population of sub-Saharan Africa is younger than 25 years of age, and every year for the next decade, we expect 11 million youth to enter the job market.  This so-called demographic dividend offers a tremendous opportunity for Africa to build a valuable base of human capital that will serve as the engine for the economic transformation of our continent.  After a decade of exceptional economic growth in Africa, with GDP rising by an average of 4.5 percent per year during the last decade, it is time to build even more diversified and competitive economies.  This solid record of sustained economic growth must be accompanied by a reduction in poverty and inequality, and increased opportunities for shared prosperity on our continent. With new mineral discoveries seemingly every month, the ability to extract, refine and market these resources is increasingly critical. As Africa now features the world’s highest rate of urbanization, the ability to feed urban populations through increased agricultural productivity and enhanced infrastructure to deliver crops to market is equally important. With online learning a growing source of education for students worldwide, including Africa, the quality and access to broadband services, and online content, should be a home-grown African imperative. These are but a few of the examples of the transformation of the African economy that is underway, but which needs the proper set of tools to be fully realized. To achieve such shared growth, we must equip the new generation of talented and ambitious young Africans with the skills and knowledge to enable them to formulate and implement African solutions for Africa’s challenges.  Hence the imperative for this High Level Forum on Higher Education Science and Technology.  We have made strong progress in getting more children into primary and secondary school, with a number of African countries on track to achieve the MDG for universal primary enrollment and gender parity. Today, our challenge is to improve learning outcomes and take those students completing primary and secondary school to the next level.  Similarly, after decades of limited engagement in post-secondary education, the World Bank Group and other partners are directing a long-overdue focus on higher education and, importantly, the content of university studies and the skills needed to enter the job market and contribute to Africa’s growth and development.  The university systems in many African countries still reflect the legacy of our colonial past – the curricula were designed to produce a cadre of civil servants to administer the government, with an emphasis on non-scientific disciplines which were only available to a small minority of students. Today, we need to reverse that trend, to allow Africa to take its rightful place in the fully integrated global economy.   Africa’s stock of graduates with secondary- and tertiary-level skills is highly skewed towards the humanities and social sciences, while the proportion of students in science, technology, engineering, and mathematics is very low, averaging less than 25 percent in the region. Further, women are under-represented in science and technology-related courses and professions in the Continent. The link between technological capacity and economic growth is clear. Harnessing new technologies increases productivity, employment opportunities, and the ability to move up the production value chain. Today, research shows that more than 60 percent of the difference between countries—in terms of their growth rates and worker incomes—is a result of differences in total factor productivity, particularly human factor productivity, which are in turn derived from differences in technology. Compared with low-income countries, OECD members have 12 times per capita the number of scientists and engineers working in R&D, and publish 25 times as many scientific journal articles. To be more competitive, expand trade, and remove barriers to enter new markets, Africa must expand knowledge and expertise in science and technology. From increased agricultural productivity to higher energy production, from more efficient and broadly available ICT services to better employability around the extractive industries, building human capital in science and technology is critical to empower Africa to take advantage of its strengths.  The six-fold increase in FDI flows into Africa over the last ten years further highlights the pressing need to build local expertise in extractives, agriculture, infrastructure and services.     We have made efforts in recent years to expand investment in the sciences. The African Union and the New Partnership for Africa’s Development (NEPAD) have joined forces to tackle the issue head on and have formulated a “Science and Technology Consolidated Action Plan.” We at the World Bank are fully behind this plan. NEPAD is setting up centers of excellence in the biosciences, water sciences, and technology, while the Comprehensive Africa Agriculture Development Program (CAADP) promotes the use of science and technology to boost agricultural productivity. I would also like to acknowledge and vision and leadership of H.E. Paul Kagame in reforming the education system here in Rwanda, and for serving as a champion of innovation and technology.  In preparing for my trip to Kigali this week, I was reminded of a speech that President Kagame delivered at MIT in September 2008, titled “The Imperative of Science and Technology in Accelerating African and Rwandan Development”.  At that time, President Kagame recognized the centrality of utilizing science and technology to effect Africa’s transformation.  Innovation and entrepreneurship remain pressing priorities today to maximize the potential of Rwanda’s—and the continent’s—most precious resource: its human capital.  As this afternoon’s Call to Action will articulate, even more collaborative action is needed to build on this momentum. The World Bank has ongoing operations that support science and technology in Nigeria, Tanzania, and Senegal, and we will soon present to our Board our “Africa Centers of Excellence Project,” which will bring together universities across the continent to address common development challenges. The project will focus on key sectors including extractive industries, energy, environment, health, agriculture, and ICT.  While the Phase One project will focus on universities in West and Central Africa, I can commit to you today that the Bank will also launch a Phase Two project in the coming year with a focus on Eastern and Southern Africa. Regional partnerships such as this will help universities pool their limited resources and achieve economies of scale, allowing them to set up joint laboratories, set common standards for R&D and, most importantly, share knowledge and expertise.  Beyond the borders of the continent, we are tapping the vast experience of Brazil, China, India and Korea under the umbrella of our Partnership for the Applied Sciences, Education and Technology (or PASET). This South-South learning initiative is a rich source of knowledge to help build the higher education capabilities in African institutions. Advances in communication technology offer added opportunities to leverage Africa’s research diaspora in Europe and North America. African academics working abroad are a tremendous asset we must not overlook – and greater efforts are needed to tap this valuable resource.   While collaboration will help improve the quality and depth of scientific education, the key is to ensure that students can apply what they’ve learned once they graduate, and to do so in contributing to the economic transformation of the continent. Which brings me to my second point:  we need much stronger links between universities and the private sector. It is the best way to ensure that students are graduating with skills that reflect what employers actually need. Let’s get the private sector better represented on our university boards, let’s get employers involved in vocational training programs, and let’s work with them on curriculum design.  And in a more practical sense, let’s encourage private sector partners to offer apprenticeships, internships, and certification programs. These steps will help bridge the gap between what’s being taught in universities and the realities of the job market. Third, let me emphasize that to make lasting progress in science-based education, investments must be made at all levels – from primary school to university. If students aren’t proficient in basic math and science by the time they leave secondary school, they won’t be able to pursue science- and math-based courses at a higher level. Many schools across the continent lack appropriate math and science instruction, and students are emerging with disturbingly low levels of proficiency relative to international benchmarks. Investments in science and technology at the tertiary level can help overcome this bottleneck by providing better training for teachers and by enabling research on national policies for science and technology at every level of the education system. Finally, I would like to address the issue of equal access. Women are dramatically under-represented in most science- and technology- related courses and professions.  Rwanda has achieved impressive results in improving school access for girls at the primary and secondary level.  Yet the gender divide is wide when it comes to higher education - especially in science and technology degrees where less than 30 percent of students are women. This critical gap is similar across the region and we must all do more to address it. Tackling the root causes of absenteeism and low examination grades is but one of several key factors in boosting the retention and admission rates for women in higher education. Equitable access must be at the heart of any modern education system. It helps to confront inequality - which persists in too many African countries today - and it creates an even larger reservoir of talented and eager young people who will thrive and contribute to the continent’s growth and prosperity.   To sum up, investing in science and technology is critical if Africa is to be competitive in the global economy. Strengthening cooperation among higher education institutions across the continent and beyond, linking up with the private sector, improving basic math and science education in schools, and ensuring equitable access are all key elements in making higher education more relevant to today’s economic and social challenges.     Ladies and gentlemen, I encourage you to not only take bold steps to improve the quality of science and technology education, but also to undertake the necessary reforms to attract the private sector.    As the Bank commits to support this initiative, including the Africa Centers of Excellence Projects that I described earlier, our collective efforts are needed to address the lingering challenges.  Let us set some bold targets:  that we will see a doubling of the percentage of university students graduating from African universities with degrees in mathematics, science and technology in ten years’ time, in 2025. This will require, obviously, a concerted commitment to increase resource allocations to mathematics, reading and science at the primary and secondary levels, to form the foundational building blocks for the higher education system we are seeking to advance with this High Level Forum.  I would also invite the Ministers present here today to undertake a census of your university graduates to determine the number of degrees completed in mathematics, science and technology in your respective countries.  This is an important first step to set quantitative targets, and will give us the necessary benchmark against which to measure our collective progress. Being here in Rwanda makes it clear that the Government has a clear focus on measurable targets.  Allow me to stress we must focus on: Results, Results, Results; Implementation, Implementation, Implementation; and Measurable Targets, Measurable Targets, Measurable Targets. The time has never been more auspicious to focus on higher education, particularly in science, technology and mathematics.  The burgeoning youth population of Africa will drive the growth and prosperity of the continent into the next generation, but only if we equip them to do so. I thank you again for the opportunity to open today’s session, and I look forward to working with you to implement the dynamic outcomes.    Thank you. ","content_1000":" Let me thank you, Mr. Minister, and your Government, for hosting this important event.  I am delighted to see so much enthusiasm, at the highest level of policy-making, for a topic that has been close to my heart for years and that is crucial for Africa’s success in the 21st Century. Higher education is now front and center of the development debate – and with good reason.  More than 50 percent of the population of sub-Saharan Africa is younger than 25 years of age, and every year for the next decade, we expect 11 million youth to enter the job market.  This so-called demographic dividend offers a tremendous opportunity for Africa to build a valuable base of human capital that will serve as the engine for the economic transformation of our continent.  After a decade of exceptional economic growth in Africa, with GDP rising by an average of 4.5 percent per year during the last decade, it is time to build even more diversified and competitive economies.  This so","displayconttype":"Speeches and Transcripts","originating_unit":"Africa, AFR","originating_unit_exact":"Africa, AFR","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Speeches and Transcripts","node_id":"f63727f0dc9921514664b90551d7842fe32f0b67","wn_title":"Speech by Makhtar Diop at the High-level Forum on Higher Education, Science and Technology in Africa","wn_desc":" Let me thank you, Mr. Minister, and your Government, for hosting this important event.  I am delighted to see so much enthusiasm, at the highest level of policy-making, for a topic that has been close to my heart for years and that is crucial for Africa’s success in the 21st Century. Higher education is now front and center of the development debate – and with good reason.  More than 50 percent of the population of sub-Saharan Africa is younger than 25 years of age, and every year for the next decade, we expect 11 million youth to enter the job market.  This so-called demographic dividend offers a tremendous opportunity for Africa to build a valuable base of human capital that will serve as the engine for the economic transformation of our continent.  After a decade of exceptional economic growth in Africa, with GDP rising by an average of 4.5 percent per year during the last decade, it is time to build even more diversified and competitive economies.  This solid record of sustained economic growth must be accompanied by a reduction in poverty and inequality, and increased opportunities for shared prosperity on our continent. With new mineral discoveries seemingly every month, the ability to extract, refine and market these resources is increasingly critical. As Africa now features the world’s highest rate of urbanization, the ability to feed urban populations through increased agricultural productivity and enhanced infrastructure to deliver crops to market is equally important. With online learning a growing source of education for students worldwide, including Africa, the quality and access to broadband services, and online content, should be a home-grown African imperative. These are but a few of the examples of the transformation of the African economy that is underway, but which needs the proper set of tools to be fully realized. To achieve such shared growth, we must equip the new generation of talented and ambitious young Africans with the skills and knowledge to enable them to formulate and implement African solutions for Africa’s challenges.  Hence the imperative for this High Level Forum on Higher Education Science and Technology.  We have made strong progress in getting more children into primary and secondary school, with a number of African countries on track to achieve the MDG for universal primary enrollment and gender parity. Today, our challenge is to improve learning outcomes and take those students completing primary and secondary school to the next level.  Similarly, after decades of limited engagement in post-secondary education, the World Bank Group and other partners are directing a long-overdue focus on higher education and, importantly, the content of university studies and the skills needed to enter the job market and contribute to Africa’s growth and development.  The university systems in many African countries still reflect the legacy of our colonial past – the curricula were designed to produce a cadre of civil servants to administer the government, with an emphasis on non-scientific disciplines which were only available to a small minority of students. Today, we need to reverse that trend, to allow Africa to take its rightful place in the fully integrated global economy.   Africa’s stock of graduates with secondary- and tertiary-level skills is highly skewed towards the humanities and social sciences, while the proportion of students in science, technology, engineering, and mathematics is very low, averaging less than 25 percent in the region. Further, women are under-represented in science and technology-related courses and professions in the Continent. The link between technological capacity and economic growth is clear. Harnessing new technologies increases productivity, employment opportunities, and the ability to move up the production value chain. Today, research shows that more than 60 percent of the difference between countries—in terms of their growth rates and worker incomes—is a result of differences in total factor productivity, particularly human factor productivity, which are in turn derived from differences in technology. Compared with low-income countries, OECD members have 12 times per capita the number of scientists and engineers working in R&D, and publish 25 times as many scientific journal articles. To be more competitive, expand trade, and remove barriers to enter new markets, Africa must expand knowledge and expertise in science and technology. From increased agricultural productivity to higher energy production, from more efficient and broadly available ICT services to better employability around the extractive industries, building human capital in science and technology is critical to empower Africa to take advantage of its strengths.  The six-fold increase in FDI flows into Africa over the last ten years further highlights the pressing need to build local expertise in extractives, agriculture, infrastructure and services.     We have made efforts in recent years to expand investment in the sciences. The African Union and the New Partnership for Africa’s Development (NEPAD) have joined forces to tackle the issue head on and have formulated a “Science and Technology Consolidated Action Plan.” We at the World Bank are fully behind this plan. NEPAD is setting up centers of excellence in the biosciences, water sciences, and technology, while the Comprehensive Africa Agriculture Development Program (CAADP) promotes the use of science and technology to boost agricultural productivity. I would also like to acknowledge and vision and leadership of H.E. Paul Kagame in reforming the education system here in Rwanda, and for serving as a champion of innovation and technology.  In preparing for my trip to Kigali this week, I was reminded of a speech that President Kagame delivered at MIT in September 2008, titled “The Imperative of Science and Technology in Accelerating African and Rwandan Development”.  At that time, President Kagame recognized the centrality of utilizing science and technology to effect Africa’s transformation.  Innovation and entrepreneurship remain pressing priorities today to maximize the potential of Rwanda’s—and the continent’s—most precious resource: its human capital.  As this afternoon’s Call to Action will articulate, even more collaborative action is needed to build on this momentum. The World Bank has ongoing operations that support science and technology in Nigeria, Tanzania, and Senegal, and we will soon present to our Board our “Africa Centers of Excellence Project,” which will bring together universities across the continent to address common development challenges. The project will focus on key sectors including extractive industries, energy, environment, health, agriculture, and ICT.  While the Phase One project will focus on universities in West and Central Africa, I can commit to you today that the Bank will also launch a Phase Two project in the coming year with a focus on Eastern and Southern Africa. Regional partnerships such as this will help universities pool their limited resources and achieve economies of scale, allowing them to set up joint laboratories, set common standards for R&D and, most importantly, share knowledge and expertise.  Beyond the borders of the continent, we are tapping the vast experience of Brazil, China, India and Korea under the umbrella of our Partnership for the Applied Sciences, Education and Technology (or PASET). This South-South learning initiative is a rich source of knowledge to help build the higher education capabilities in African institutions. Advances in communication technology offer added opportunities to leverage Africa’s research diaspora in Europe and North America. African academics working abroad are a tremendous asset we must not overlook – and greater efforts are needed to tap this valuable resource.   While collaboration will help improve the quality and depth of scientific education, the key is to ensure that students can apply what they’ve learned once they graduate, and to do so in contributing to the economic transformation of the continent. Which brings me to my second point:  we need much stronger links between universities and the private sector. It is the best way to ensure that students are graduating with skills that reflect what employers actually need. Let’s get the private sector better represented on our university boards, let’s get employers involved in vocational training programs, and let’s work with them on curriculum design.  And in a more practical sense, let’s encourage private sector partners to offer apprenticeships, internships, and certification programs. These steps will help bridge the gap between what’s being taught in universities and the realities of the job market. Third, let me emphasize that to make lasting progress in science-based education, investments must be made at all levels – from primary school to university. If students aren’t proficient in basic math and science by the time they leave secondary school, they won’t be able to pursue science- and math-based courses at a higher level. Many schools across the continent lack appropriate math and science instruction, and students are emerging with disturbingly low levels of proficiency relative to international benchmarks. Investments in science and technology at the tertiary level can help overcome this bottleneck by providing better training for teachers and by enabling research on national policies for science and technology at every level of the education system. Finally, I would like to address the issue of equal access. Women are dramatically under-represented in most science- and technology- related courses and professions.  Rwanda has achieved impressive results in improving school access for girls at the primary and secondary level.  Yet the gender divide is wide when it comes to higher education - especially in science and technology degrees where less than 30 percent of students are women. This critical gap is similar across the region and we must all do more to address it. Tackling the root causes of absenteeism and low examination grades is but one of several key factors in boosting the retention and admission rates for women in higher education. Equitable access must be at the heart of any modern education system. It helps to confront inequality - which persists in too many African countries today - and it creates an even larger reservoir of talented and eager young people who will thrive and contribute to the continent’s growth and prosperity.   To sum up, investing in science and technology is critical if Africa is to be competitive in the global economy. Strengthening cooperation among higher education institutions across the continent and beyond, linking up with the private sector, improving basic math and science education in schools, and ensuring equitable access are all key elements in making higher education more relevant to today’s economic and social challenges.     Ladies and gentlemen, I encourage you to not only take bold steps to improve the quality of science and technology education, but also to undertake the necessary reforms to attract the private sector.    As the Bank commits to support this initiative, including the Africa Centers of Excellence Projects that I described earlier, our collective efforts are needed to address the lingering challenges.  Let us set some bold targets:  that we will see a doubling of the percentage of university students graduating from African universities with degrees in mathematics, science and technology in ten years’ time, in 2025. This will require, obviously, a concerted commitment to increase resource allocations to mathematics, reading and science at the primary and secondary levels, to form the foundational building blocks for the higher education system we are seeking to advance with this High Level Forum.  I would also invite the Ministers present here today to undertake a census of your university graduates to determine the number of degrees completed in mathematics, science and technology in your respective countries.  This is an important first step to set quantitative targets, and will give us the necessary benchmark against which to measure our collective progress. Being here in Rwanda makes it clear that the Government has a clear focus on measurable targets.  Allow me to stress we must focus on: Results, Results, Results; Implementation, Implementation, Implementation; and Measurable Targets, Measurable Targets, Measurable Targets. The time has never been more auspicious to focus on higher education, particularly in science, technology and mathematics.  The burgeoning youth population of Africa will drive the growth and prosperity of the continent into the next generation, but only if we equip them to do so. I thank you again for the opportunity to open today’s session, and I look forward to working with you to implement the dynamic outcomes.    Thank you. ","master_date":"2014-03-13T01:28:00Z","master_date_srt":"2014-03-13T01:28:00Z","master_recent_date_srt":"2014-03-13T01:28:00Z","master_recent_date":"2014-03-13T01:28:00Z","masterregion_exact":"Africa","short_description":"Speech by Makhtar Diop at the High-level Forum on Higher Education, Science and Technology in Africa","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":" Let me thank you, Mr. Minister, and your Government, for hosting this important event.  I am delighted to see so much enthusiasm, at the highest level of policy-making, for a topic that has been close to my heart for years and that is crucial for Africa’s success in the 21st Century. Higher education is now front and center of the development debate – and with good reason.  More than 50 percent of the population of sub-Saharan Africa is younger than 25 years of age, and every year for the next decade, we expect 11 million youth to enter the job market.  This so-called demographic dividend offers a tremendous opportunity for Africa to build a valuable base of human capital that will serve as the engine for the economic transformation of our continent.  After a decade of exceptional economic growth in Africa, with GDP rising by an average of 4.5 percent per year during the last decade, it is time to build even more diversified and competitive economies.  This solid record of sustained economic growth must be accompanied by a reduction in poverty and inequality, and increased opportunities for shared prosperity on our continent. With new mineral discoveries seemingly every month, the ability to extract, refine and market these resources is increasingly critical. As Africa now features the world’s highest rate of urbanization, the ability to feed urban populations through increased agricultural productivity and enhanced infrastructure to deliver crops to market is equally important. With online learning a growing source of education for students worldwide, including Africa, the quality and access to broadband services, and online content, should be a home-grown African imperative. These are but a few of the examples of the transformation of the African economy that is underway, but which needs the proper set of tools to be fully realized. To achieve such shared growth, we must equip the new generation of talented and ambitious young Africans with the skills and knowledge to enable them to formulate and implement African solutions for Africa’s challenges.  Hence the imperative for this High Level Forum on Higher Education Science and Technology.  We have made strong progress in getting more children into primary and secondary school, with a number of African countries on track to achieve the MDG for universal primary enrollment and gender parity. Today, our challenge is to improve learning outcomes and take those students completing primary and secondary school to the next level.  Similarly, after decades of limited engagement in post-secondary education, the World Bank Group and other partners are directing a long-overdue focus on higher education and, importantly, the content of university studies and the skills needed to enter the job market and contribute to Africa’s growth and development.  The university systems in many African countries still reflect the legacy of our colonial past – the curricula were designed to produce a cadre of civil servants to administer the government, with an emphasis on non-scientific disciplines which were only available to a small minority of students. Today, we need to reverse that trend, to allow Africa to take its rightful place in the fully integrated global economy.   Africa’s stock of graduates with secondary- and tertiary-level skills is highly skewed towards the humanities and social sciences, while the proportion of students in science, technology, engineering, and mathematics is very low, averaging less than 25 percent in the region. Further, women are under-represented in science and technology-related courses and professions in the Continent. The link between technological capacity and economic growth is clear. Harnessing new technologies increases productivity, employment opportunities, and the ability to move up the production value chain. Today, research shows that more than 60 percent of the difference between countries—in terms of their growth rates and worker incomes—is a result of differences in total factor productivity, particularly human factor productivity, which are in turn derived from differences in technology. Compared with low-income countries, OECD members have 12 times per capita the number of scientists and engineers working in R&D, and publish 25 times as many scientific journal articles. To be more competitive, expand trade, and remove barriers to enter new markets, Africa must expand knowledge and expertise in science and technology. From increased agricultural productivity to higher energy production, from more efficient and broadly available ICT services to better employability around the extractive industries, building human capital in science and technology is critical to empower Africa to take advantage of its strengths.  The six-fold increase in FDI flows into Africa over the last ten years further highlights the pressing need to build local expertise in extractives, agriculture, infrastructure and services.     We have made efforts in recent years to expand investment in the sciences. The African Union and the New Partnership for Africa’s Development (NEPAD) have joined forces to tackle the issue head on and have formulated a “Science and Technology Consolidated Action Plan.” We at the World Bank are fully behind this plan. NEPAD is setting up centers of excellence in the biosciences, water sciences, and technology, while the Comprehensive Africa Agriculture Development Program (CAADP) promotes the use of science and technology to boost agricultural productivity. I would also like to acknowledge and vision and leadership of H.E. Paul Kagame in reforming the education system here in Rwanda, and for serving as a champion of innovation and technology.  In preparing for my trip to Kigali this week, I was reminded of a speech that President Kagame delivered at MIT in September 2008, titled “The Imperative of Science and Technology in Accelerating African and Rwandan Development”.  At that time, President Kagame recognized the centrality of utilizing science and technology to effect Africa’s transformation.  Innovation and entrepreneurship remain pressing priorities today to maximize the potential of Rwanda’s—and the continent’s—most precious resource: its human capital.  As this afternoon’s Call to Action will articulate, even more collaborative action is needed to build on this momentum. The World Bank has ongoing operations that support science and technology in Nigeria, Tanzania, and Senegal, and we will soon present to our Board our “Africa Centers of Excellence Project,” which will bring together universities across the continent to address common development challenges. The project will focus on key sectors including extractive industries, energy, environment, health, agriculture, and ICT.  While the Phase One project will focus on universities in West and Central Africa, I can commit to you today that the Bank will also launch a Phase Two project in the coming year with a focus on Eastern and Southern Africa. Regional partnerships such as this will help universities pool their limited resources and achieve economies of scale, allowing them to set up joint laboratories, set common standards for R&D and, most importantly, share knowledge and expertise.  Beyond the borders of the continent, we are tapping the vast experience of Brazil, China, India and Korea under the umbrella of our Partnership for the Applied Sciences, Education and Technology (or PASET). This South-South learning initiative is a rich source of knowledge to help build the higher education capabilities in African institutions. Advances in communication technology offer added opportunities to leverage Africa’s research diaspora in Europe and North America. African academics working abroad are a tremendous asset we must not overlook – and greater efforts are needed to tap this valuable resource.   While collaboration will help improve the quality and depth of scientific education, the key is to ensure that students can apply what they’ve learned once they graduate, and to do so in contributing to the economic transformation of the continent. Which brings me to my second point:  we need much stronger links between universities and the private sector. It is the best way to ensure that students are graduating with skills that reflect what employers actually need. Let’s get the private sector better represented on our university boards, let’s get employers involved in vocational training programs, and let’s work with them on curriculum design.  And in a more practical sense, let’s encourage private sector partners to offer apprenticeships, internships, and certification programs. These steps will help bridge the gap between what’s being taught in universities and the realities of the job market. Third, let me emphasize that to make lasting progress in science-based education, investments must be made at all levels – from primary school to university. If students aren’t proficient in basic math and science by the time they leave secondary school, they won’t be able to pursue science- and math-based courses at a higher level. Many schools across the continent lack appropriate math and science instruction, and students are emerging with disturbingly low levels of proficiency relative to international benchmarks. Investments in science and technology at the tertiary level can help overcome this bottleneck by providing better training for teachers and by enabling research on national policies for science and technology at every level of the education system. Finally, I would like to address the issue of equal access. Women are dramatically under-represented in most science- and technology- related courses and professions.  Rwanda has achieved impressive results in improving school access for girls at the primary and secondary level.  Yet the gender divide is wide when it comes to higher education - especially in science and technology degrees where less than 30 percent of students are women. This critical gap is similar across the region and we must all do more to address it. Tackling the root causes of absenteeism and low examination grades is but one of several key factors in boosting the retention and admission rates for women in higher education. Equitable access must be at the heart of any modern education system. It helps to confront inequality - which persists in too many African countries today - and it creates an even larger reservoir of talented and eager young people who will thrive and contribute to the continent’s growth and prosperity.   To sum up, investing in science and technology is critical if Africa is to be competitive in the global economy. Strengthening cooperation among higher education institutions across the continent and beyond, linking up with the private sector, improving basic math and science education in schools, and ensuring equitable access are all key elements in making higher education more relevant to today’s economic and social challenges.     Ladies and gentlemen, I encourage you to not only take bold steps to improve the quality of science and technology education, but also to undertake the necessary reforms to attract the private sector.    As the Bank commits to support this initiative, including the Africa Centers of Excellence Projects that I described earlier, our collective efforts are needed to address the lingering challenges.  Let us set some bold targets:  that we will see a doubling of the percentage of university students graduating from African universities with degrees in mathematics, science and technology in ten years’ time, in 2025. This will require, obviously, a concerted commitment to increase resource allocations to mathematics, reading and science at the primary and secondary levels, to form the foundational building blocks for the higher education system we are seeking to advance with this High Level Forum.  I would also invite the Ministers present here today to undertake a census of your university graduates to determine the number of degrees completed in mathematics, science and technology in your respective countries.  This is an important first step to set quantitative targets, and will give us the necessary benchmark against which to measure our collective progress. Being here in Rwanda makes it clear that the Government has a clear focus on measurable targets.  Allow me to stress we must focus on: Results, Results, Results; Implementation, Implementation, Implementation; and Measurable Targets, Measurable Targets, Measurable Targets. The time has never been more auspicious to focus on higher education, particularly in science, technology and mathematics.  The burgeoning youth population of Africa will drive the growth and prosperity of the continent into the next generation, but only if we equip them to do so. I thank you again for the opportunity to open today’s session, and I look forward to working with you to implement the dynamic outcomes.    Thank you. ","date":"2014-03-13T01:28:00Z","contenttype":"Speeches and Transcripts"},"_17ba4effcce35191b96e13e0184399209090d28e":{"id":"17ba4effcce35191b96e13e0184399209090d28e","title":"Speech by World Bank Africa Region Vice President Makhtar Diop to the Senegal Consultative Group","countrycode":"SN,FR","country":"Senegal,France","country_exact":"Senegal,France","countrycode_exact":"SN,FR","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2014/02/24/discours-de-makhtar-diop-vice-president-de-la-region-afrique-de-la-banque-mondiale-dans-le-cadre-du-groupe-consultatif-du-senegal","count":"Senegal,France","descr":"Speech by World Bank Africa Region Vice President Makhtar Diop to the Senegal Consultative Group","keywd":"regions:Africa,country:Senegal,country:France","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","cqpath":"/content/wb-home/en/news/speech/2014/02/24/discours-de-makhtar-diop-vice-president-de-la-region-afrique-de-la-banque-mondiale-dans-le-cadre-du-groupe-consultatif-du-senegal","regionname":"Africa","wcmsource":"cq5","content":" Your Excellency, President of the Republic of Senegal, Madame Minister, representing the French Government, Honorable Ministers, Dear Colleagues, Ladies and Gentlemen, Mr. President, First of all, I would like to express, on behalf of the President of the World Bank Group, our thanks for choosing our Paris offices for the Seventh Consultative Group, to which Senegal has invited its partners, both public and private. In his eyes, this highly symbolic choice attests to the excellent partnership between Senegal and the World Bank Group.   Mr. President, Sustainable growth lies at the heart of the challenge. Many countries boast strong growth rates based on the exploitation of natural resources. Thus, it is all too easy to find a direct connection between a strong growth rate and exploitation of these resources.  But in so doing, there is a tendency to forget that an abundance of natural resources is in no sense a requisite condition for obtaining a sustainable growth rate; Singapore and South Korea show this to be true. I mention this fact to emphasize the necessity for Senegal to pursue a path of sustained growth based on the absence of abundant natural resources, despite occasional announcements of discoveries of gold or zircon. Indeed, Senegal enjoys comparative advantages that, in other countries, have produced sustainable positive effects. High-quality human capital, political stability, strong institutions, selection capacity, good governance, an open relationship with the rest of the world, and a strong capacity to adapt and implement economic policies – these are the characteristics of countries that have successfully managed the transition toward emergence. Human capital has long been Senegal’s most important resource. This human capital, Ladies and Gentlemen, must remain the foundation on which growth is built, along with efforts to strengthen institutions so they will remain viable and deep-rooted over the long term. In this regard, we must applaud the efforts that Senegal is making to improve the education sector. For years, the World Bank and other partners have provided support to the Government of Senegal to strengthen its education sector. In addition, the World Bank Group has brought about a significant comeback in higher education; the record of performance in secondary and primary education does indeed hinge on high-quality higher education, and there’s no limit to what we can hope for. Let me cite one example to illustrate this optimism: the African Center for mathematics, computer science, and information and communication technologies at Gaston Berger University outside Saint-Louis, which aims to create the conditions for high-quality research in applied mathematics and ICTs. Let me also emphasize the reforms that you are preparing to launch in secondary education, aimed in particular at adapting school curricula to the realities of today’s world. These reforms in the education sphere should receive continued support because they represent the very foundation of a service-based economy.   Mr. President, Ladies and Gentlemen, Building strong and sustainable institutions and facilitating the emergence of high-capacity human resources go hand in hand with a requirement of accountability and the reduction of inequalities. Marginalization of a segment of the population that does not benefit from a fair share of the country’s wealth is a threat that must not be ignored. As such, we applaud the Plan Sénégal Emergent, which appears to us to be a strategic instrument for reducing inequality.  We should recall that, prior to this plan, your partners unanimously applauded the expansion of social welfare through the distribution of family allowances, along with the development of universal health coverage, a pair of innovations that Senegal is implementing in the African context. These salutary efforts are not, however, enough, as there is also a need for growth in job-creating sectors, including the informal sector.  “Jobs, jobs, jobs” may indeed be the credo of any policy oriented toward shared prosperity. It is great to note that public policies are being reoriented toward development of the agricultural sector based on improvements in land management and irrigation. At least for now, agriculture is one of the greatest sources of job creation and poverty reduction.  Therefore, we will not let up on our efforts to support this sector, all the more so because it constitutes one of the pillars of the Plan Sénégal Emergent. We are also convinced that resources allocated to the agricultural sector should be further increased by a significant margin.  In particular, there is a need to improve the financing for agriculture by improving the regulatory framework, rehabilitating the sector’s financial institutions, and supporting the development of leading institutions that will have a leveraging effect. In terms of the logic of job creation, I should also emphasize the need to revive the manufacturing sector. This is especially urgent as you firmly situate Senegal, Mr. President, within a regional dynamic of growth in this sector, notably with the new rail connections planned toward Mali and the Banda energy project with Mauritania. Senegal’s favorable geographic location, especially with respect to Europe, is an advantage.  To fully benefit from it, the infrastructure must be upgraded and the procedures governing movements of goods and services simplified. Senegal has already implemented public-private partnerships that have indisputably had an impact on growth and, just this month, has set in place a new framework law, called the CET, to facilitate these operations; you can count on the support of the World Bank Group as you continue on this path. However, all this potential will be for naught without a competitive business environment.  We hope that the indicators related to the business climate will improve substantially as a result of immediate implementation of the decisions reached by the 2012 Presidential Investment Council, with a new program of reforms concerning the business environment and competitiveness in the next two years. To achieve the objectives of the Plan Sénégal Emergent, it is essential that the cost of inputs be in line with those in competing countries.  The World Bank will assist the government in implementing a well-planned energy policy, favoring production costs that are clearly on the decline. This strategy will require actively looking for regional solutions with the neighboring countries of Mauritania and Guinea. Here again, we are encouraged by the upcoming signing of the Banda project, which is an example of an innovative project that includes the private sector and countries of the sub-region, aimed at local processing of the continent’s natural resources. The World Bank will assist Guinea in its Keleta and Souapiti projects. Here’s an African solution to an African challenge! The accelerated urbanization of the African continent and of Senegal itself offers accelerated opportunities for technology transfer and leads to the creation of new, more sophisticated markets with increasingly demanding consumers.  In this area, social housing is an important tool that combines direct support for underprivileged populations with job creation through construction programs. Here again, institutional and financial reinforcement of specialized institutions will be necessary for this sector to take off. More generally, we will encourage labor-intensive solutions in infrastructure construction projects. To cite just one example, the paved road construction projects financed by the World Bank in Central America have clearly had a positive impact on employment.   Ladies and Gentlemen, Senegal has already demonstrated strong innovation capacities which have enabled it to carry out successful policies in infrastructure sectors (e.g. toll road) and in the nutrition sector.  The challenge for the future is to strengthen these capacities.  Meeting this challenge will require:A very specific effort focusing on results and implementation;Constant adaptation to a rapidly changing external environment;The most efficient use possible of the resources that are mobilized, particularly in the context of this Consultative Group, because this is the only way to be sure, if you will excuse the expression, of getting your money’s worth – or what we call Value for Money – and this will reassure all your partners, both public and private, not to mention Senegalese civil society, which I applaud for a growing mobilization of strength to ensure effective implementation of public policies favoring the reduction of inequality. On behalf of the World Bank Group, I would like to reiterate our commitment to continue our partnership through support to the public investment program, but also in the area of private sector mobilization.  Tomorrow, my colleague Jean-Philippe Prosper will no doubt indicate the main lines of action that will enable IFC to support more effectively the Senegalese private sector. I can assure you that your intention to emphasize resolute implementation and monitoring, well on display in the Plan Sénégal Emergent and reflected in the creation of a Service Delivery Unit, is in keeping with the guidelines introduced by the President of the World Bank Group, Jim Yong Kim. I hope this gathering meets with tremendous success, and I thank you for your kind attention. Thank you.   ","content_1000":" Your Excellency, President of the Republic of Senegal, Madame Minister, representing the French Government, Honorable Ministers, Dear Colleagues, Ladies and Gentlemen, Mr. President, First of all, I would like to express, on behalf of the President of the World Bank Group, our thanks for choosing our Paris offices for the Seventh Consultative Group, to which Senegal has invited its partners, both public and private. In his eyes, this highly symbolic choice attests to the excellent partnership between Senegal and the World Bank Group.   Mr. President, Sustainable growth lies at the heart of the challenge. Many countries boast strong growth rates based on the exploitation of natural resources. Thus, it is all too easy to find a direct connection between a strong growth rate and exploitation of these resources.  But in so doing, there is a tendency to forget that an abundance of natural resources is in no sense a requisite condition for obtaining a sustainable growth rate; Sing","displayconttype":"Speeches and Transcripts","originating_unit":"Africa, AFR","originating_unit_exact":"Africa, AFR","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Speeches and Transcripts","node_id":"17ba4effcce35191b96e13e0184399209090d28e","wn_title":"Speech by World Bank Africa Region Vice President Makhtar Diop to the Senegal Consultative Group","wn_desc":" Your Excellency, President of the Republic of Senegal, Madame Minister, representing the French Government, Honorable Ministers, Dear Colleagues, Ladies and Gentlemen, Mr. President, First of all, I would like to express, on behalf of the President of the World Bank Group, our thanks for choosing our Paris offices for the Seventh Consultative Group, to which Senegal has invited its partners, both public and private. In his eyes, this highly symbolic choice attests to the excellent partnership between Senegal and the World Bank Group.   Mr. President, Sustainable growth lies at the heart of the challenge. Many countries boast strong growth rates based on the exploitation of natural resources. Thus, it is all too easy to find a direct connection between a strong growth rate and exploitation of these resources.  But in so doing, there is a tendency to forget that an abundance of natural resources is in no sense a requisite condition for obtaining a sustainable growth rate; Singapore and South Korea show this to be true. I mention this fact to emphasize the necessity for Senegal to pursue a path of sustained growth based on the absence of abundant natural resources, despite occasional announcements of discoveries of gold or zircon. Indeed, Senegal enjoys comparative advantages that, in other countries, have produced sustainable positive effects. High-quality human capital, political stability, strong institutions, selection capacity, good governance, an open relationship with the rest of the world, and a strong capacity to adapt and implement economic policies – these are the characteristics of countries that have successfully managed the transition toward emergence. Human capital has long been Senegal’s most important resource. This human capital, Ladies and Gentlemen, must remain the foundation on which growth is built, along with efforts to strengthen institutions so they will remain viable and deep-rooted over the long term. In this regard, we must applaud the efforts that Senegal is making to improve the education sector. For years, the World Bank and other partners have provided support to the Government of Senegal to strengthen its education sector. In addition, the World Bank Group has brought about a significant comeback in higher education; the record of performance in secondary and primary education does indeed hinge on high-quality higher education, and there’s no limit to what we can hope for. Let me cite one example to illustrate this optimism: the African Center for mathematics, computer science, and information and communication technologies at Gaston Berger University outside Saint-Louis, which aims to create the conditions for high-quality research in applied mathematics and ICTs. Let me also emphasize the reforms that you are preparing to launch in secondary education, aimed in particular at adapting school curricula to the realities of today’s world. These reforms in the education sphere should receive continued support because they represent the very foundation of a service-based economy.   Mr. President, Ladies and Gentlemen, Building strong and sustainable institutions and facilitating the emergence of high-capacity human resources go hand in hand with a requirement of accountability and the reduction of inequalities. Marginalization of a segment of the population that does not benefit from a fair share of the country’s wealth is a threat that must not be ignored. As such, we applaud the Plan Sénégal Emergent, which appears to us to be a strategic instrument for reducing inequality.  We should recall that, prior to this plan, your partners unanimously applauded the expansion of social welfare through the distribution of family allowances, along with the development of universal health coverage, a pair of innovations that Senegal is implementing in the African context. These salutary efforts are not, however, enough, as there is also a need for growth in job-creating sectors, including the informal sector.  “Jobs, jobs, jobs” may indeed be the credo of any policy oriented toward shared prosperity. It is great to note that public policies are being reoriented toward development of the agricultural sector based on improvements in land management and irrigation. At least for now, agriculture is one of the greatest sources of job creation and poverty reduction.  Therefore, we will not let up on our efforts to support this sector, all the more so because it constitutes one of the pillars of the Plan Sénégal Emergent. We are also convinced that resources allocated to the agricultural sector should be further increased by a significant margin.  In particular, there is a need to improve the financing for agriculture by improving the regulatory framework, rehabilitating the sector’s financial institutions, and supporting the development of leading institutions that will have a leveraging effect. In terms of the logic of job creation, I should also emphasize the need to revive the manufacturing sector. This is especially urgent as you firmly situate Senegal, Mr. President, within a regional dynamic of growth in this sector, notably with the new rail connections planned toward Mali and the Banda energy project with Mauritania. Senegal’s favorable geographic location, especially with respect to Europe, is an advantage.  To fully benefit from it, the infrastructure must be upgraded and the procedures governing movements of goods and services simplified. Senegal has already implemented public-private partnerships that have indisputably had an impact on growth and, just this month, has set in place a new framework law, called the CET, to facilitate these operations; you can count on the support of the World Bank Group as you continue on this path. However, all this potential will be for naught without a competitive business environment.  We hope that the indicators related to the business climate will improve substantially as a result of immediate implementation of the decisions reached by the 2012 Presidential Investment Council, with a new program of reforms concerning the business environment and competitiveness in the next two years. To achieve the objectives of the Plan Sénégal Emergent, it is essential that the cost of inputs be in line with those in competing countries.  The World Bank will assist the government in implementing a well-planned energy policy, favoring production costs that are clearly on the decline. This strategy will require actively looking for regional solutions with the neighboring countries of Mauritania and Guinea. Here again, we are encouraged by the upcoming signing of the Banda project, which is an example of an innovative project that includes the private sector and countries of the sub-region, aimed at local processing of the continent’s natural resources. The World Bank will assist Guinea in its Keleta and Souapiti projects. Here’s an African solution to an African challenge! The accelerated urbanization of the African continent and of Senegal itself offers accelerated opportunities for technology transfer and leads to the creation of new, more sophisticated markets with increasingly demanding consumers.  In this area, social housing is an important tool that combines direct support for underprivileged populations with job creation through construction programs. Here again, institutional and financial reinforcement of specialized institutions will be necessary for this sector to take off. More generally, we will encourage labor-intensive solutions in infrastructure construction projects. To cite just one example, the paved road construction projects financed by the World Bank in Central America have clearly had a positive impact on employment.   Ladies and Gentlemen, Senegal has already demonstrated strong innovation capacities which have enabled it to carry out successful policies in infrastructure sectors (e.g. toll road) and in the nutrition sector.  The challenge for the future is to strengthen these capacities.  Meeting this challenge will require:A very specific effort focusing on results and implementation;Constant adaptation to a rapidly changing external environment;The most efficient use possible of the resources that are mobilized, particularly in the context of this Consultative Group, because this is the only way to be sure, if you will excuse the expression, of getting your money’s worth – or what we call Value for Money – and this will reassure all your partners, both public and private, not to mention Senegalese civil society, which I applaud for a growing mobilization of strength to ensure effective implementation of public policies favoring the reduction of inequality. On behalf of the World Bank Group, I would like to reiterate our commitment to continue our partnership through support to the public investment program, but also in the area of private sector mobilization.  Tomorrow, my colleague Jean-Philippe Prosper will no doubt indicate the main lines of action that will enable IFC to support more effectively the Senegalese private sector. I can assure you that your intention to emphasize resolute implementation and monitoring, well on display in the Plan Sénégal Emergent and reflected in the creation of a Service Delivery Unit, is in keeping with the guidelines introduced by the President of the World Bank Group, Jim Yong Kim. I hope this gathering meets with tremendous success, and I thank you for your kind attention. Thank you.   ","master_date":"2014-02-24T10:21:00Z","master_date_srt":"2014-02-24T10:21:00Z","master_recent_date_srt":"2014-02-24T10:21:00Z","master_recent_date":"2014-02-24T10:21:00Z","masterregion_exact":"Africa","short_description":"Speech by World Bank Africa Region Vice President Makhtar Diop to the Senegal Consultative Group","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":" Your Excellency, President of the Republic of Senegal, Madame Minister, representing the French Government, Honorable Ministers, Dear Colleagues, Ladies and Gentlemen, Mr. President, First of all, I would like to express, on behalf of the President of the World Bank Group, our thanks for choosing our Paris offices for the Seventh Consultative Group, to which Senegal has invited its partners, both public and private. In his eyes, this highly symbolic choice attests to the excellent partnership between Senegal and the World Bank Group.   Mr. President, Sustainable growth lies at the heart of the challenge. Many countries boast strong growth rates based on the exploitation of natural resources. Thus, it is all too easy to find a direct connection between a strong growth rate and exploitation of these resources.  But in so doing, there is a tendency to forget that an abundance of natural resources is in no sense a requisite condition for obtaining a sustainable growth rate; Singapore and South Korea show this to be true. I mention this fact to emphasize the necessity for Senegal to pursue a path of sustained growth based on the absence of abundant natural resources, despite occasional announcements of discoveries of gold or zircon. Indeed, Senegal enjoys comparative advantages that, in other countries, have produced sustainable positive effects. High-quality human capital, political stability, strong institutions, selection capacity, good governance, an open relationship with the rest of the world, and a strong capacity to adapt and implement economic policies – these are the characteristics of countries that have successfully managed the transition toward emergence. Human capital has long been Senegal’s most important resource. This human capital, Ladies and Gentlemen, must remain the foundation on which growth is built, along with efforts to strengthen institutions so they will remain viable and deep-rooted over the long term. In this regard, we must applaud the efforts that Senegal is making to improve the education sector. For years, the World Bank and other partners have provided support to the Government of Senegal to strengthen its education sector. In addition, the World Bank Group has brought about a significant comeback in higher education; the record of performance in secondary and primary education does indeed hinge on high-quality higher education, and there’s no limit to what we can hope for. Let me cite one example to illustrate this optimism: the African Center for mathematics, computer science, and information and communication technologies at Gaston Berger University outside Saint-Louis, which aims to create the conditions for high-quality research in applied mathematics and ICTs. Let me also emphasize the reforms that you are preparing to launch in secondary education, aimed in particular at adapting school curricula to the realities of today’s world. These reforms in the education sphere should receive continued support because they represent the very foundation of a service-based economy.   Mr. President, Ladies and Gentlemen, Building strong and sustainable institutions and facilitating the emergence of high-capacity human resources go hand in hand with a requirement of accountability and the reduction of inequalities. Marginalization of a segment of the population that does not benefit from a fair share of the country’s wealth is a threat that must not be ignored. As such, we applaud the Plan Sénégal Emergent, which appears to us to be a strategic instrument for reducing inequality.  We should recall that, prior to this plan, your partners unanimously applauded the expansion of social welfare through the distribution of family allowances, along with the development of universal health coverage, a pair of innovations that Senegal is implementing in the African context. These salutary efforts are not, however, enough, as there is also a need for growth in job-creating sectors, including the informal sector.  “Jobs, jobs, jobs” may indeed be the credo of any policy oriented toward shared prosperity. It is great to note that public policies are being reoriented toward development of the agricultural sector based on improvements in land management and irrigation. At least for now, agriculture is one of the greatest sources of job creation and poverty reduction.  Therefore, we will not let up on our efforts to support this sector, all the more so because it constitutes one of the pillars of the Plan Sénégal Emergent. We are also convinced that resources allocated to the agricultural sector should be further increased by a significant margin.  In particular, there is a need to improve the financing for agriculture by improving the regulatory framework, rehabilitating the sector’s financial institutions, and supporting the development of leading institutions that will have a leveraging effect. In terms of the logic of job creation, I should also emphasize the need to revive the manufacturing sector. This is especially urgent as you firmly situate Senegal, Mr. President, within a regional dynamic of growth in this sector, notably with the new rail connections planned toward Mali and the Banda energy project with Mauritania. Senegal’s favorable geographic location, especially with respect to Europe, is an advantage.  To fully benefit from it, the infrastructure must be upgraded and the procedures governing movements of goods and services simplified. Senegal has already implemented public-private partnerships that have indisputably had an impact on growth and, just this month, has set in place a new framework law, called the CET, to facilitate these operations; you can count on the support of the World Bank Group as you continue on this path. However, all this potential will be for naught without a competitive business environment.  We hope that the indicators related to the business climate will improve substantially as a result of immediate implementation of the decisions reached by the 2012 Presidential Investment Council, with a new program of reforms concerning the business environment and competitiveness in the next two years. To achieve the objectives of the Plan Sénégal Emergent, it is essential that the cost of inputs be in line with those in competing countries.  The World Bank will assist the government in implementing a well-planned energy policy, favoring production costs that are clearly on the decline. This strategy will require actively looking for regional solutions with the neighboring countries of Mauritania and Guinea. Here again, we are encouraged by the upcoming signing of the Banda project, which is an example of an innovative project that includes the private sector and countries of the sub-region, aimed at local processing of the continent’s natural resources. The World Bank will assist Guinea in its Keleta and Souapiti projects. Here’s an African solution to an African challenge! The accelerated urbanization of the African continent and of Senegal itself offers accelerated opportunities for technology transfer and leads to the creation of new, more sophisticated markets with increasingly demanding consumers.  In this area, social housing is an important tool that combines direct support for underprivileged populations with job creation through construction programs. Here again, institutional and financial reinforcement of specialized institutions will be necessary for this sector to take off. More generally, we will encourage labor-intensive solutions in infrastructure construction projects. To cite just one example, the paved road construction projects financed by the World Bank in Central America have clearly had a positive impact on employment.   Ladies and Gentlemen, Senegal has already demonstrated strong innovation capacities which have enabled it to carry out successful policies in infrastructure sectors (e.g. toll road) and in the nutrition sector.  The challenge for the future is to strengthen these capacities.  Meeting this challenge will require:A very specific effort focusing on results and implementation;Constant adaptation to a rapidly changing external environment;The most efficient use possible of the resources that are mobilized, particularly in the context of this Consultative Group, because this is the only way to be sure, if you will excuse the expression, of getting your money’s worth – or what we call Value for Money – and this will reassure all your partners, both public and private, not to mention Senegalese civil society, which I applaud for a growing mobilization of strength to ensure effective implementation of public policies favoring the reduction of inequality. On behalf of the World Bank Group, I would like to reiterate our commitment to continue our partnership through support to the public investment program, but also in the area of private sector mobilization.  Tomorrow, my colleague Jean-Philippe Prosper will no doubt indicate the main lines of action that will enable IFC to support more effectively the Senegalese private sector. I can assure you that your intention to emphasize resolute implementation and monitoring, well on display in the Plan Sénégal Emergent and reflected in the creation of a Service Delivery Unit, is in keeping with the guidelines introduced by the President of the World Bank Group, Jim Yong Kim. I hope this gathering meets with tremendous success, and I thank you for your kind attention. Thank you.   ","date":"2014-02-24T10:21:00Z","contenttype":"Speeches and Transcripts"},"_b21926bfd474748dc31bff2b5196c2a0084bfc1c":{"id":"b21926bfd474748dc31bff2b5196c2a0084bfc1c","title":"Remarks by Makhtar Diop, Vice President for the Africa Region, World Bank","countrycode":"KE","country":"Kenya","country_exact":"Kenya","countrycode_exact":"KE","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2013/12/11/remarks-by-makhtar-diop-vice-president-for-the-africa-region-world-bank","count":"Kenya","descr":"President Uhuru Kenyatta of Kenya and World Bank Vice President for Africa Makhtar Diop on December 11th celebrated Kenya's Independence and longstanding partnership with the World Bank Group.","keywd":"country:Kenya,regions:Africa","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","cqpath":"/content/wb-home/en/news/speech/2013/12/11/remarks-by-makhtar-diop-vice-president-for-the-africa-region-world-bank","regionname":"Africa","wcmsource":"cq5","content":" Your Excellency President KenyattaHonorable Cabinet SecretariesWorld Bank Executive Director Denny KalyalyaPrincipal SecretariesDistinguished guestsLadies and Gentlemen:  We are extremely honored, Mr. President, to you have and Mr. Vice President, and members of your Cabinet for this dedication today.  This is a manifestation of the strength of our relationship between Kenya and the World Bank.  This building is a physical reflection of this relationship, as it is THE largest World Bank building outside the headquarters in Washington.  This magnificent building, of more than 25,000 square meters, will include 12 floors of World Bank Group staff – in a state of the art, fully ‘green’ work spaces and IT facilities.    Before noting the joyous occasions we are here to mark, allow me first to express my own personal sense of loss on the passing of our brother and mourned leader, Nelson Mandela. Madiba was a beacon to all Africans, and his influence and inspiration will live on. As he lies in state today in Pretoria, let us take a moment to honor his memory.  I would also like, Mr. President, to offer my condolences as well on the tragic events at Westgate. Our hearts ached for the losses suffered and we stand with you.   At the personal level, Mr. President, coming to Kenya is not a typical country visit for me – it is indeed a homecoming.   As we are opening this office and you will be celebrating the 50th anniversary of Kenyan Independence, this is a great opportunity to look back, not only at what the Bank has brought to Kenya, but what Kenya has brought – and taught – us.  For information, Your Excellence, the program of Kenya has comprised a total of 180 operations since 1960, totaling more than $7 billion in IDA commitments and nearly $1.2 billion in IBRD resources. My colleague Mr. Oumar Seydi has already recounted the volume of IFC support to Kenya as well.  The World Bank emphasis, Mr. President, on eradicating poverty, has long been articulated. I am reminded of a landmark speech delivered by Mr. Robert McNamara, former President of the World Bank, here in Nairobi in September of 1973. Well before the days of HIPC debt relief and poverty reduction strategies, Mr. McNamara observed: “The basic problem of poverty and growth in the developing world can be stated very simply. The growth is not equitably reaching the poor. And the poor are not significantly contributing to growth.”   Mr. McNamara also indicated at that time, the importance of developing the sectors to support growth and poverty reduction. And the wisdom of that emphasis remains today. Our President, Dr. Jim Yong Kim, has given new life to this focus by reaffirming the Bank’s mission to eradicate extreme poverty by 2030 and to build shared prosperity.   At the time of Mr. McNamara’s speech in Nairobi, Kenya was the first country to articulate an initiative to link the growth of agriculture with the poverty reduction objective.  The famous ‘tea roads’ inspired a generation of World Bank work elsewhere in the world, based on helping small farmers to increase productivity and their incomes.   As such the World Bank Group remains grateful to Kenya for being the origin of what has shaped the Bank’s poverty reduction work over the past 50 years. Kenya has also been a prime example in Africa to strengthen our belief that the private sector is the engine of growth.  All conditions should be met to create a conducive environment in which it can flourish, create jobs, and contribute to macroeconomic stability. At a time when many countries in Africa were struggling with the idea of the private sector as the engine of growth, Kenya had already embraced this concept. Building on this vibrant private sector, Kenya was able to become an economic leader in the sub-region.  Today we have a consensus on the need for sound macroeconomic policy, just as there is a consensus in Africa that the private sector will be the engine of growth.  We owe a debt of gratitude to Kenya that this proposition, long accepted outside the continent, demonstrated that this was possible in Africa. In that sense, Mr. President, you were ahead of your time.  Let me pause, Mr. President, to say it was not just the private sector as the origin, but also the experience of Kenya shows the centrality of the domestic private sector. The Kenyan domestic private sector has been able to be a world leader in sectors such as cut flowers, tea and coffee production, and a significant player in sectors such as services, ICT, and air transport. It is clear that this inspires us to shape our work as we intervene on the private sector in Africa – how to support the local, as well as the foreign, investment climate.  Today, Kenya is at a crossroads and we hope you will soon ascend to middle-income status – which brings with it challenges as well.  We have also learned from Kenya about the importance of home-grown institutions. In the last two decades it has become clear that institutions are at the center of economic development.  Not only institutions related to economic activities, but institutions as a whole. The history of Africa reflects the inherited institutions from our colonial past. Kenya, through its constitutional review process, was able – through a long but robust consultative process – to reflect the views of Kenyan citizens in how it organized the country and the resulting institutions to reflect the social and economic realities as well as Kenyan culture and history.  As a result of this process, questions spanning from gender-based violence, from human rights, to devolution have been codified in this new constitution. From that process, we believe that the resulting institutions will respond to the aspirations of the Kenyan people, and thereby translate their aspirations in concrete realization.  As we are examine the contribution of Kenya to economic development thinking in Africa, we have an opportunity to also look at the challenges for the coming decades. As Kenya has shown, private sector-led growth is the agreed modus operandi. We also need, together, to work towards increasing and accelerating the productivity and competitiveness of the Kenyan economy, to allow the private sector to continue playing this crucial role.  As you highlight, Mr. President, in many of your statements, it will be important to significantly reduce hurdles and bureaucracy that are a self-inflicted wound and an obstacle to growth. I would like to commend you on the efforts already undertaken to accelerate reform and improvements to the Port of Mombasa, which is already having a significant positive impact on reducing the cost of doing business in Kenya and elsewhere in the sub-region. It will also require accelerated investment in infrastructure in order to close the gap between the MICs with which Kenya will compete. In that context, public sector efforts to move progressively to a higher level of investment will offer an opportunity for the private sector to contribute to bridging the infrastructure gap. Mr. President, we are pleased to hear that significant steps have been taken to create a PPP framework that will allow greater private investment in infrastructure, and we look forward to future adoption of the related bylaws to make this a reality.  Part of boosting competitiveness of the economy requires investment in human capital. We have been honored to be associated with the free universal primary education program that was underway in Kenya seven years ago, when I was here.  With your vision and clear commitment to universal health coverage, we will join you in that effort as well. As access has significantly improved in Kenya – on both health and education – your focus, Mr. President, on quality and service delivery is highly commendable. The Bank will be delighted to accompany your efforts to improve human capital through better-quality services delivered to the population in education and health, and thereby increase productive opportunities for the poorest, improve human development indicators, and make the transition to middle-income status that is accompanied by reduced inequality, thereby avoiding the pitfalls befallen by other countries.  Similarly, using the huge progress achieved in Kenya in ICT affords a wonderful opportunity to reduce significantly administrative processes that currently affect the cost of doing business here in Kenya.  Mr. President, the Kenyan people have devised a constitution that grants massive authority to decentralized entities. In any country, implementation of such processes is complex, and they pose challenges. As the Kenya government formulates laws to implement, we stand ready to offer our support to you in this process – to avoid disruption in service delivery linked to delivery, but also, Mr. President, to help you measure and improve the current capacity to deliver services to your people at the local level.  Mr. President, allow me to associate myself with all the people who commended Kenya for the sound macroeconomic performance over the past decade – through prudent fiscal policy and debt management.  Moving forward, the transition to middle income status will be a virtuous one – in that it will be inclusive and sustainable. It will also require sound management of the natural resources that Kenya is discovering and poised to exploit. Countries such as Botswana are showing us this is indeed possible. We are confident that Kenya can, and will do likewise.  I would like to thank you again, Mr. President, you and Kenyan people, for having associated the World Bank Group with this economic success story, and for allowing us to be a part of Kenya’s bright future. In this vein, allow me to congratulate and recognize the work of Kenyan Nobel Laureate Wangari Maathai – as we are increasingly aware of the importance of climate change and sustainability in the trajectory of Kenya’s growth and development.  Mr. President, Kenya is for the World Bank Group, one of the countries that we can see making a rapid transition to middle-income status.  We have learned much from your successes - for which we thank you - and we welcome the opportunity for continued partnership, knowledge sharing, and improved outcomes for Kenya and the entire continent.  My renewed congratulations on this auspicious occasion of your Golden Jubilee, and we are honored to have His Excellency President Kenyatta here to join in dedicating our new facility.  I would now like to turn to the Honorable Dr. Henry Rotich, Cabinet Secretary, to introduce His Excellency the President.  Asante sana. ","content_1000":" Your Excellency President KenyattaHonorable Cabinet SecretariesWorld Bank Executive Director Denny KalyalyaPrincipal SecretariesDistinguished guestsLadies and Gentlemen:  We are extremely honored, Mr. President, to you have and Mr. Vice President, and members of your Cabinet for this dedication today.  This is a manifestation of the strength of our relationship between Kenya and the World Bank.  This building is a physical reflection of this relationship, as it is THE largest World Bank building outside the headquarters in Washington.  This magnificent building, of more than 25,000 square meters, will include 12 floors of World Bank Group staff – in a state of the art, fully ‘green’ work spaces and IT facilities.    Before noting the joyous occasions we are here to mark, allow me first to express my own personal sense of loss on the passing of our brother and mourned leader, Nelson Mandela. Madiba was a beacon to all Africans, and his influence and inspiration","displayconttype":"Speeches and Transcripts","originating_unit":"Africa, AFR","originating_unit_exact":"Africa, AFR","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Speeches and Transcripts","node_id":"b21926bfd474748dc31bff2b5196c2a0084bfc1c","wn_title":"Remarks by Makhtar Diop, Vice President for the Africa Region, World Bank","wn_desc":" Your Excellency President KenyattaHonorable Cabinet SecretariesWorld Bank Executive Director Denny KalyalyaPrincipal SecretariesDistinguished guestsLadies and Gentlemen:  We are extremely honored, Mr. President, to you have and Mr. Vice President, and members of your Cabinet for this dedication today.  This is a manifestation of the strength of our relationship between Kenya and the World Bank.  This building is a physical reflection of this relationship, as it is THE largest World Bank building outside the headquarters in Washington.  This magnificent building, of more than 25,000 square meters, will include 12 floors of World Bank Group staff – in a state of the art, fully ‘green’ work spaces and IT facilities.    Before noting the joyous occasions we are here to mark, allow me first to express my own personal sense of loss on the passing of our brother and mourned leader, Nelson Mandela. Madiba was a beacon to all Africans, and his influence and inspiration will live on. As he lies in state today in Pretoria, let us take a moment to honor his memory.  I would also like, Mr. President, to offer my condolences as well on the tragic events at Westgate. Our hearts ached for the losses suffered and we stand with you.   At the personal level, Mr. President, coming to Kenya is not a typical country visit for me – it is indeed a homecoming.   As we are opening this office and you will be celebrating the 50th anniversary of Kenyan Independence, this is a great opportunity to look back, not only at what the Bank has brought to Kenya, but what Kenya has brought – and taught – us.  For information, Your Excellence, the program of Kenya has comprised a total of 180 operations since 1960, totaling more than $7 billion in IDA commitments and nearly $1.2 billion in IBRD resources. My colleague Mr. Oumar Seydi has already recounted the volume of IFC support to Kenya as well.  The World Bank emphasis, Mr. President, on eradicating poverty, has long been articulated. I am reminded of a landmark speech delivered by Mr. Robert McNamara, former President of the World Bank, here in Nairobi in September of 1973. Well before the days of HIPC debt relief and poverty reduction strategies, Mr. McNamara observed: “The basic problem of poverty and growth in the developing world can be stated very simply. The growth is not equitably reaching the poor. And the poor are not significantly contributing to growth.”   Mr. McNamara also indicated at that time, the importance of developing the sectors to support growth and poverty reduction. And the wisdom of that emphasis remains today. Our President, Dr. Jim Yong Kim, has given new life to this focus by reaffirming the Bank’s mission to eradicate extreme poverty by 2030 and to build shared prosperity.   At the time of Mr. McNamara’s speech in Nairobi, Kenya was the first country to articulate an initiative to link the growth of agriculture with the poverty reduction objective.  The famous ‘tea roads’ inspired a generation of World Bank work elsewhere in the world, based on helping small farmers to increase productivity and their incomes.   As such the World Bank Group remains grateful to Kenya for being the origin of what has shaped the Bank’s poverty reduction work over the past 50 years. Kenya has also been a prime example in Africa to strengthen our belief that the private sector is the engine of growth.  All conditions should be met to create a conducive environment in which it can flourish, create jobs, and contribute to macroeconomic stability. At a time when many countries in Africa were struggling with the idea of the private sector as the engine of growth, Kenya had already embraced this concept. Building on this vibrant private sector, Kenya was able to become an economic leader in the sub-region.  Today we have a consensus on the need for sound macroeconomic policy, just as there is a consensus in Africa that the private sector will be the engine of growth.  We owe a debt of gratitude to Kenya that this proposition, long accepted outside the continent, demonstrated that this was possible in Africa. In that sense, Mr. President, you were ahead of your time.  Let me pause, Mr. President, to say it was not just the private sector as the origin, but also the experience of Kenya shows the centrality of the domestic private sector. The Kenyan domestic private sector has been able to be a world leader in sectors such as cut flowers, tea and coffee production, and a significant player in sectors such as services, ICT, and air transport. It is clear that this inspires us to shape our work as we intervene on the private sector in Africa – how to support the local, as well as the foreign, investment climate.  Today, Kenya is at a crossroads and we hope you will soon ascend to middle-income status – which brings with it challenges as well.  We have also learned from Kenya about the importance of home-grown institutions. In the last two decades it has become clear that institutions are at the center of economic development.  Not only institutions related to economic activities, but institutions as a whole. The history of Africa reflects the inherited institutions from our colonial past. Kenya, through its constitutional review process, was able – through a long but robust consultative process – to reflect the views of Kenyan citizens in how it organized the country and the resulting institutions to reflect the social and economic realities as well as Kenyan culture and history.  As a result of this process, questions spanning from gender-based violence, from human rights, to devolution have been codified in this new constitution. From that process, we believe that the resulting institutions will respond to the aspirations of the Kenyan people, and thereby translate their aspirations in concrete realization.  As we are examine the contribution of Kenya to economic development thinking in Africa, we have an opportunity to also look at the challenges for the coming decades. As Kenya has shown, private sector-led growth is the agreed modus operandi. We also need, together, to work towards increasing and accelerating the productivity and competitiveness of the Kenyan economy, to allow the private sector to continue playing this crucial role.  As you highlight, Mr. President, in many of your statements, it will be important to significantly reduce hurdles and bureaucracy that are a self-inflicted wound and an obstacle to growth. I would like to commend you on the efforts already undertaken to accelerate reform and improvements to the Port of Mombasa, which is already having a significant positive impact on reducing the cost of doing business in Kenya and elsewhere in the sub-region. It will also require accelerated investment in infrastructure in order to close the gap between the MICs with which Kenya will compete. In that context, public sector efforts to move progressively to a higher level of investment will offer an opportunity for the private sector to contribute to bridging the infrastructure gap. Mr. President, we are pleased to hear that significant steps have been taken to create a PPP framework that will allow greater private investment in infrastructure, and we look forward to future adoption of the related bylaws to make this a reality.  Part of boosting competitiveness of the economy requires investment in human capital. We have been honored to be associated with the free universal primary education program that was underway in Kenya seven years ago, when I was here.  With your vision and clear commitment to universal health coverage, we will join you in that effort as well. As access has significantly improved in Kenya – on both health and education – your focus, Mr. President, on quality and service delivery is highly commendable. The Bank will be delighted to accompany your efforts to improve human capital through better-quality services delivered to the population in education and health, and thereby increase productive opportunities for the poorest, improve human development indicators, and make the transition to middle-income status that is accompanied by reduced inequality, thereby avoiding the pitfalls befallen by other countries.  Similarly, using the huge progress achieved in Kenya in ICT affords a wonderful opportunity to reduce significantly administrative processes that currently affect the cost of doing business here in Kenya.  Mr. President, the Kenyan people have devised a constitution that grants massive authority to decentralized entities. In any country, implementation of such processes is complex, and they pose challenges. As the Kenya government formulates laws to implement, we stand ready to offer our support to you in this process – to avoid disruption in service delivery linked to delivery, but also, Mr. President, to help you measure and improve the current capacity to deliver services to your people at the local level.  Mr. President, allow me to associate myself with all the people who commended Kenya for the sound macroeconomic performance over the past decade – through prudent fiscal policy and debt management.  Moving forward, the transition to middle income status will be a virtuous one – in that it will be inclusive and sustainable. It will also require sound management of the natural resources that Kenya is discovering and poised to exploit. Countries such as Botswana are showing us this is indeed possible. We are confident that Kenya can, and will do likewise.  I would like to thank you again, Mr. President, you and Kenyan people, for having associated the World Bank Group with this economic success story, and for allowing us to be a part of Kenya’s bright future. In this vein, allow me to congratulate and recognize the work of Kenyan Nobel Laureate Wangari Maathai – as we are increasingly aware of the importance of climate change and sustainability in the trajectory of Kenya’s growth and development.  Mr. President, Kenya is for the World Bank Group, one of the countries that we can see making a rapid transition to middle-income status.  We have learned much from your successes - for which we thank you - and we welcome the opportunity for continued partnership, knowledge sharing, and improved outcomes for Kenya and the entire continent.  My renewed congratulations on this auspicious occasion of your Golden Jubilee, and we are honored to have His Excellency President Kenyatta here to join in dedicating our new facility.  I would now like to turn to the Honorable Dr. Henry Rotich, Cabinet Secretary, to introduce His Excellency the President.  Asante sana. ","master_date":"2013-12-11T13:25:00Z","master_date_srt":"2013-12-11T13:25:00Z","master_recent_date_srt":"2013-12-11T13:25:00Z","master_recent_date":"2013-12-11T13:25:00Z","masterregion_exact":"Africa","short_description":"President Uhuru Kenyatta of Kenya and World Bank Vice President for Africa Makhtar Diop on December 11th celebrated Kenya's Independence and longstanding partnership with the World Bank Group.","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":" Your Excellency President KenyattaHonorable Cabinet SecretariesWorld Bank Executive Director Denny KalyalyaPrincipal SecretariesDistinguished guestsLadies and Gentlemen:  We are extremely honored, Mr. President, to you have and Mr. Vice President, and members of your Cabinet for this dedication today.  This is a manifestation of the strength of our relationship between Kenya and the World Bank.  This building is a physical reflection of this relationship, as it is THE largest World Bank building outside the headquarters in Washington.  This magnificent building, of more than 25,000 square meters, will include 12 floors of World Bank Group staff – in a state of the art, fully ‘green’ work spaces and IT facilities.    Before noting the joyous occasions we are here to mark, allow me first to express my own personal sense of loss on the passing of our brother and mourned leader, Nelson Mandela. Madiba was a beacon to all Africans, and his influence and inspiration will live on. As he lies in state today in Pretoria, let us take a moment to honor his memory.  I would also like, Mr. President, to offer my condolences as well on the tragic events at Westgate. Our hearts ached for the losses suffered and we stand with you.   At the personal level, Mr. President, coming to Kenya is not a typical country visit for me – it is indeed a homecoming.   As we are opening this office and you will be celebrating the 50th anniversary of Kenyan Independence, this is a great opportunity to look back, not only at what the Bank has brought to Kenya, but what Kenya has brought – and taught – us.  For information, Your Excellence, the program of Kenya has comprised a total of 180 operations since 1960, totaling more than $7 billion in IDA commitments and nearly $1.2 billion in IBRD resources. My colleague Mr. Oumar Seydi has already recounted the volume of IFC support to Kenya as well.  The World Bank emphasis, Mr. President, on eradicating poverty, has long been articulated. I am reminded of a landmark speech delivered by Mr. Robert McNamara, former President of the World Bank, here in Nairobi in September of 1973. Well before the days of HIPC debt relief and poverty reduction strategies, Mr. McNamara observed: “The basic problem of poverty and growth in the developing world can be stated very simply. The growth is not equitably reaching the poor. And the poor are not significantly contributing to growth.”   Mr. McNamara also indicated at that time, the importance of developing the sectors to support growth and poverty reduction. And the wisdom of that emphasis remains today. Our President, Dr. Jim Yong Kim, has given new life to this focus by reaffirming the Bank’s mission to eradicate extreme poverty by 2030 and to build shared prosperity.   At the time of Mr. McNamara’s speech in Nairobi, Kenya was the first country to articulate an initiative to link the growth of agriculture with the poverty reduction objective.  The famous ‘tea roads’ inspired a generation of World Bank work elsewhere in the world, based on helping small farmers to increase productivity and their incomes.   As such the World Bank Group remains grateful to Kenya for being the origin of what has shaped the Bank’s poverty reduction work over the past 50 years. Kenya has also been a prime example in Africa to strengthen our belief that the private sector is the engine of growth.  All conditions should be met to create a conducive environment in which it can flourish, create jobs, and contribute to macroeconomic stability. At a time when many countries in Africa were struggling with the idea of the private sector as the engine of growth, Kenya had already embraced this concept. Building on this vibrant private sector, Kenya was able to become an economic leader in the sub-region.  Today we have a consensus on the need for sound macroeconomic policy, just as there is a consensus in Africa that the private sector will be the engine of growth.  We owe a debt of gratitude to Kenya that this proposition, long accepted outside the continent, demonstrated that this was possible in Africa. In that sense, Mr. President, you were ahead of your time.  Let me pause, Mr. President, to say it was not just the private sector as the origin, but also the experience of Kenya shows the centrality of the domestic private sector. The Kenyan domestic private sector has been able to be a world leader in sectors such as cut flowers, tea and coffee production, and a significant player in sectors such as services, ICT, and air transport. It is clear that this inspires us to shape our work as we intervene on the private sector in Africa – how to support the local, as well as the foreign, investment climate.  Today, Kenya is at a crossroads and we hope you will soon ascend to middle-income status – which brings with it challenges as well.  We have also learned from Kenya about the importance of home-grown institutions. In the last two decades it has become clear that institutions are at the center of economic development.  Not only institutions related to economic activities, but institutions as a whole. The history of Africa reflects the inherited institutions from our colonial past. Kenya, through its constitutional review process, was able – through a long but robust consultative process – to reflect the views of Kenyan citizens in how it organized the country and the resulting institutions to reflect the social and economic realities as well as Kenyan culture and history.  As a result of this process, questions spanning from gender-based violence, from human rights, to devolution have been codified in this new constitution. From that process, we believe that the resulting institutions will respond to the aspirations of the Kenyan people, and thereby translate their aspirations in concrete realization.  As we are examine the contribution of Kenya to economic development thinking in Africa, we have an opportunity to also look at the challenges for the coming decades. As Kenya has shown, private sector-led growth is the agreed modus operandi. We also need, together, to work towards increasing and accelerating the productivity and competitiveness of the Kenyan economy, to allow the private sector to continue playing this crucial role.  As you highlight, Mr. President, in many of your statements, it will be important to significantly reduce hurdles and bureaucracy that are a self-inflicted wound and an obstacle to growth. I would like to commend you on the efforts already undertaken to accelerate reform and improvements to the Port of Mombasa, which is already having a significant positive impact on reducing the cost of doing business in Kenya and elsewhere in the sub-region. It will also require accelerated investment in infrastructure in order to close the gap between the MICs with which Kenya will compete. In that context, public sector efforts to move progressively to a higher level of investment will offer an opportunity for the private sector to contribute to bridging the infrastructure gap. Mr. President, we are pleased to hear that significant steps have been taken to create a PPP framework that will allow greater private investment in infrastructure, and we look forward to future adoption of the related bylaws to make this a reality.  Part of boosting competitiveness of the economy requires investment in human capital. We have been honored to be associated with the free universal primary education program that was underway in Kenya seven years ago, when I was here.  With your vision and clear commitment to universal health coverage, we will join you in that effort as well. As access has significantly improved in Kenya – on both health and education – your focus, Mr. President, on quality and service delivery is highly commendable. The Bank will be delighted to accompany your efforts to improve human capital through better-quality services delivered to the population in education and health, and thereby increase productive opportunities for the poorest, improve human development indicators, and make the transition to middle-income status that is accompanied by reduced inequality, thereby avoiding the pitfalls befallen by other countries.  Similarly, using the huge progress achieved in Kenya in ICT affords a wonderful opportunity to reduce significantly administrative processes that currently affect the cost of doing business here in Kenya.  Mr. President, the Kenyan people have devised a constitution that grants massive authority to decentralized entities. In any country, implementation of such processes is complex, and they pose challenges. As the Kenya government formulates laws to implement, we stand ready to offer our support to you in this process – to avoid disruption in service delivery linked to delivery, but also, Mr. President, to help you measure and improve the current capacity to deliver services to your people at the local level.  Mr. President, allow me to associate myself with all the people who commended Kenya for the sound macroeconomic performance over the past decade – through prudent fiscal policy and debt management.  Moving forward, the transition to middle income status will be a virtuous one – in that it will be inclusive and sustainable. It will also require sound management of the natural resources that Kenya is discovering and poised to exploit. Countries such as Botswana are showing us this is indeed possible. We are confident that Kenya can, and will do likewise.  I would like to thank you again, Mr. President, you and Kenyan people, for having associated the World Bank Group with this economic success story, and for allowing us to be a part of Kenya’s bright future. In this vein, allow me to congratulate and recognize the work of Kenyan Nobel Laureate Wangari Maathai – as we are increasingly aware of the importance of climate change and sustainability in the trajectory of Kenya’s growth and development.  Mr. President, Kenya is for the World Bank Group, one of the countries that we can see making a rapid transition to middle-income status.  We have learned much from your successes - for which we thank you - and we welcome the opportunity for continued partnership, knowledge sharing, and improved outcomes for Kenya and the entire continent.  My renewed congratulations on this auspicious occasion of your Golden Jubilee, and we are honored to have His Excellency President Kenyatta here to join in dedicating our new facility.  I would now like to turn to the Honorable Dr. Henry Rotich, Cabinet Secretary, to introduce His Excellency the President.  Asante sana. ","date":"2013-12-11T13:25:00Z","contenttype":"Speeches and Transcripts"},"_e36f6e25ba438b4ab229e42225136b557ecd031e":{"id":"e36f6e25ba438b4ab229e42225136b557ecd031e","title":"Celebrating 50 Years of Development Partnership with Uganda - Remarks by Makhtar Diop, Vice President for the Africa Region, World Bank","countrycode":"UG","country":"Uganda","country_exact":"Uganda","countrycode_exact":"UG","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2013/12/10/celebrating-50-years-of-development-partnership-with-uganda-remarks-by-makhtar-diop-vice-president-for-the-africa-region-world-bank","count":"Uganda","descr":"In Kampala, Uganda, on December 10th, World Bank Vice President for Africa Makhtar Diop, with Ugandan President Yoweri Museveni, hailed Uganda's leadership in Africa's growth and development.","keywd":"subject:urban development,country:Uganda,regions:Africa","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","topic":"Urban Development","cqpath":"/content/wb-home/en/news/speech/2013/12/10/celebrating-50-years-of-development-partnership-with-uganda-remarks-by-makhtar-diop-vice-president-for-the-africa-region-world-bank","regionname":"Africa","wcmsource":"cq5","content":" It is a pleasure and a privilege for me to welcome all of you to this celebration event, marking 50 years of fruitful partnership between the World Bank Group and the Ugandan people. Before we mark this milestone, allow me to offer my condolences on the passing of Nelson Mandela, and ask you all to join me in a moment of silence to honor his memory.  I am here in Kampala to help observe the 50th anniversary of the engagement of Uganda and the World Bank.  The Bank has been here in Uganda since its independence and the portfolio is our eighth largest in Africa. Our cooperation here has been very successful. But what comes to mind when we think about 50 years of collaboration between the World Bank and Uganda? It is important to highlight what we have learned from our collaboration with Uganda.  We have learned that when a country has leaders who make a firm commitment, put in place the right policies, and have sustained financial and institutional support from the donor community, along with a firm social contract with their citizens, that country can go from a low equilibrium to one of higher, more sustained economic growth.  Paul Collier and others have documented the importance of the trajectory out of fragility. Uganda’s experience 20 years ago inspires us today as we address ongoing fragility and conflict in Central African Republic. In fact, before traveling to Kampala, I attended the Elysee Summit on Peace and Security in Africa, hosted by the French Government.  Discussions there focused on conflict, economic development, and climate change as the three broad pillars of peace and security. The second major lesson of our engagement with Uganda has been the PRSP process – the Poverty Reduction Strategy Paper. Countries formulated their own development solutions and devised those solutions on inclusive, robust consultations.  As you will remember, Uganda was one of the first countries in Africa to prepare a PRSP and benefit from a series of PRSCs – the Bank’s budget support instrument – the Poverty Reduction Support Credit.  The lesson we learned from Uganda was the need for a consultative process from which to develop inclusive, pro-poor policies.  The PRSP process provided valuable lessons in how to work more effectively with our country counterparts.  When Uganda joined the World Bank in 1963, most African economies were in transition, taking charge of their economies and working hard to boost growth and make their way in the world economy. Fast-forward to 2013: despite the slow recovery of the global economy, growth in Sub-Saharan Africa remains strong at 5.8 percent in 2012 (excluding South Africa) boosted by growing domestic demand and high commodity prices. Over the last decade, six of the world’s fastest-growing economies were African. In fact, Africa is the fastest-growing region, second only to East Asia, and Uganda aspires to achieving middle-income status.    This is not a question of “luck”; rather, the results reflect a sustained commitment by Uganda’s leaders and it is a tribute to their vision and leadership.  With a more educated, more urbanized population, a new social contract is needed between Uganda’s leaders and her people. Growth alone, no matter how sustained, will not be enough. When I served as Finance Minister of my country, Senegal, I would occasionally travel by taxi around Dakar, incognito, to get a sense of people’s views and concerns. When I asked a taxi driver one day what he thought of the latest figures on economic growth there were being discussed on his car radio, he replied “I cannot eat growth.” That exchange has stuck with me, more than a decade later. It teaches us that sustained growth, if it is capital-intensive, will not generate jobs that will lead to poverty reduction and narrowed inequality.  Every day, we hear reports of new discoveries of oil and gas in Africa – including Uganda. We cannot miss the opportunity to translate this mineral wealth into better health services and outcomes, greater transparency, improved governance.  These revenues must be used to invest in people – and not just the percentage of students enrolled or the number of clinics, but the quality of those services.  The prospect of massive hydrocarbon revenues highlights the importance of accountability – a clear social contract under which government officials serve the people, and not themselves. As we mark 50 years of collaboration, I would once again like to thank the people and the leaders of Uganda for your hospitality today and for your leadership. You have taught us much about development, growth, and ownership of the process, which in turn has influenced development thinking. Thank you very much.  ","content_1000":" It is a pleasure and a privilege for me to welcome all of you to this celebration event, marking 50 years of fruitful partnership between the World Bank Group and the Ugandan people. Before we mark this milestone, allow me to offer my condolences on the passing of Nelson Mandela, and ask you all to join me in a moment of silence to honor his memory.  I am here in Kampala to help observe the 50th anniversary of the engagement of Uganda and the World Bank.  The Bank has been here in Uganda since its independence and the portfolio is our eighth largest in Africa. Our cooperation here has been very successful. But what comes to mind when we think about 50 years of collaboration between the World Bank and Uganda? It is important to highlight what we have learned from our collaboration with Uganda.  We have learned that when a country has leaders who make a firm commitment, put in place the right policies, and have sustained financial and institutional support from the donor ","displayconttype":"Speeches and Transcripts","originating_unit":"Africa, AFR","originating_unit_exact":"Africa, AFR","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Speeches and Transcripts","node_id":"e36f6e25ba438b4ab229e42225136b557ecd031e","wn_title":"Celebrating 50 Years of Development Partnership with Uganda - Remarks by Makhtar Diop, Vice President for the Africa Region, World Bank","wn_desc":" It is a pleasure and a privilege for me to welcome all of you to this celebration event, marking 50 years of fruitful partnership between the World Bank Group and the Ugandan people. Before we mark this milestone, allow me to offer my condolences on the passing of Nelson Mandela, and ask you all to join me in a moment of silence to honor his memory.  I am here in Kampala to help observe the 50th anniversary of the engagement of Uganda and the World Bank.  The Bank has been here in Uganda since its independence and the portfolio is our eighth largest in Africa. Our cooperation here has been very successful. But what comes to mind when we think about 50 years of collaboration between the World Bank and Uganda? It is important to highlight what we have learned from our collaboration with Uganda.  We have learned that when a country has leaders who make a firm commitment, put in place the right policies, and have sustained financial and institutional support from the donor community, along with a firm social contract with their citizens, that country can go from a low equilibrium to one of higher, more sustained economic growth.  Paul Collier and others have documented the importance of the trajectory out of fragility. Uganda’s experience 20 years ago inspires us today as we address ongoing fragility and conflict in Central African Republic. In fact, before traveling to Kampala, I attended the Elysee Summit on Peace and Security in Africa, hosted by the French Government.  Discussions there focused on conflict, economic development, and climate change as the three broad pillars of peace and security. The second major lesson of our engagement with Uganda has been the PRSP process – the Poverty Reduction Strategy Paper. Countries formulated their own development solutions and devised those solutions on inclusive, robust consultations.  As you will remember, Uganda was one of the first countries in Africa to prepare a PRSP and benefit from a series of PRSCs – the Bank’s budget support instrument – the Poverty Reduction Support Credit.  The lesson we learned from Uganda was the need for a consultative process from which to develop inclusive, pro-poor policies.  The PRSP process provided valuable lessons in how to work more effectively with our country counterparts.  When Uganda joined the World Bank in 1963, most African economies were in transition, taking charge of their economies and working hard to boost growth and make their way in the world economy. Fast-forward to 2013: despite the slow recovery of the global economy, growth in Sub-Saharan Africa remains strong at 5.8 percent in 2012 (excluding South Africa) boosted by growing domestic demand and high commodity prices. Over the last decade, six of the world’s fastest-growing economies were African. In fact, Africa is the fastest-growing region, second only to East Asia, and Uganda aspires to achieving middle-income status.    This is not a question of “luck”; rather, the results reflect a sustained commitment by Uganda’s leaders and it is a tribute to their vision and leadership.  With a more educated, more urbanized population, a new social contract is needed between Uganda’s leaders and her people. Growth alone, no matter how sustained, will not be enough. When I served as Finance Minister of my country, Senegal, I would occasionally travel by taxi around Dakar, incognito, to get a sense of people’s views and concerns. When I asked a taxi driver one day what he thought of the latest figures on economic growth there were being discussed on his car radio, he replied “I cannot eat growth.” That exchange has stuck with me, more than a decade later. It teaches us that sustained growth, if it is capital-intensive, will not generate jobs that will lead to poverty reduction and narrowed inequality.  Every day, we hear reports of new discoveries of oil and gas in Africa – including Uganda. We cannot miss the opportunity to translate this mineral wealth into better health services and outcomes, greater transparency, improved governance.  These revenues must be used to invest in people – and not just the percentage of students enrolled or the number of clinics, but the quality of those services.  The prospect of massive hydrocarbon revenues highlights the importance of accountability – a clear social contract under which government officials serve the people, and not themselves. As we mark 50 years of collaboration, I would once again like to thank the people and the leaders of Uganda for your hospitality today and for your leadership. You have taught us much about development, growth, and ownership of the process, which in turn has influenced development thinking. Thank you very much.  ","master_date":"2013-12-10T21:02:00Z","master_date_srt":"2013-12-10T21:02:00Z","master_recent_date_srt":"2013-12-10T21:02:00Z","master_recent_date":"2013-12-10T21:02:00Z","masterregion_exact":"Africa","short_description":"In Kampala, Uganda, on December 10th, World Bank Vice President for Africa Makhtar Diop, with Ugandan President Yoweri Museveni, hailed Uganda's leadership in Africa's growth and development.","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":" It is a pleasure and a privilege for me to welcome all of you to this celebration event, marking 50 years of fruitful partnership between the World Bank Group and the Ugandan people. Before we mark this milestone, allow me to offer my condolences on the passing of Nelson Mandela, and ask you all to join me in a moment of silence to honor his memory.  I am here in Kampala to help observe the 50th anniversary of the engagement of Uganda and the World Bank.  The Bank has been here in Uganda since its independence and the portfolio is our eighth largest in Africa. Our cooperation here has been very successful. But what comes to mind when we think about 50 years of collaboration between the World Bank and Uganda? It is important to highlight what we have learned from our collaboration with Uganda.  We have learned that when a country has leaders who make a firm commitment, put in place the right policies, and have sustained financial and institutional support from the donor community, along with a firm social contract with their citizens, that country can go from a low equilibrium to one of higher, more sustained economic growth.  Paul Collier and others have documented the importance of the trajectory out of fragility. Uganda’s experience 20 years ago inspires us today as we address ongoing fragility and conflict in Central African Republic. In fact, before traveling to Kampala, I attended the Elysee Summit on Peace and Security in Africa, hosted by the French Government.  Discussions there focused on conflict, economic development, and climate change as the three broad pillars of peace and security. The second major lesson of our engagement with Uganda has been the PRSP process – the Poverty Reduction Strategy Paper. Countries formulated their own development solutions and devised those solutions on inclusive, robust consultations.  As you will remember, Uganda was one of the first countries in Africa to prepare a PRSP and benefit from a series of PRSCs – the Bank’s budget support instrument – the Poverty Reduction Support Credit.  The lesson we learned from Uganda was the need for a consultative process from which to develop inclusive, pro-poor policies.  The PRSP process provided valuable lessons in how to work more effectively with our country counterparts.  When Uganda joined the World Bank in 1963, most African economies were in transition, taking charge of their economies and working hard to boost growth and make their way in the world economy. Fast-forward to 2013: despite the slow recovery of the global economy, growth in Sub-Saharan Africa remains strong at 5.8 percent in 2012 (excluding South Africa) boosted by growing domestic demand and high commodity prices. Over the last decade, six of the world’s fastest-growing economies were African. In fact, Africa is the fastest-growing region, second only to East Asia, and Uganda aspires to achieving middle-income status.    This is not a question of “luck”; rather, the results reflect a sustained commitment by Uganda’s leaders and it is a tribute to their vision and leadership.  With a more educated, more urbanized population, a new social contract is needed between Uganda’s leaders and her people. Growth alone, no matter how sustained, will not be enough. When I served as Finance Minister of my country, Senegal, I would occasionally travel by taxi around Dakar, incognito, to get a sense of people’s views and concerns. When I asked a taxi driver one day what he thought of the latest figures on economic growth there were being discussed on his car radio, he replied “I cannot eat growth.” That exchange has stuck with me, more than a decade later. It teaches us that sustained growth, if it is capital-intensive, will not generate jobs that will lead to poverty reduction and narrowed inequality.  Every day, we hear reports of new discoveries of oil and gas in Africa – including Uganda. We cannot miss the opportunity to translate this mineral wealth into better health services and outcomes, greater transparency, improved governance.  These revenues must be used to invest in people – and not just the percentage of students enrolled or the number of clinics, but the quality of those services.  The prospect of massive hydrocarbon revenues highlights the importance of accountability – a clear social contract under which government officials serve the people, and not themselves. As we mark 50 years of collaboration, I would once again like to thank the people and the leaders of Uganda for your hospitality today and for your leadership. You have taught us much about development, growth, and ownership of the process, which in turn has influenced development thinking. Thank you very much.  ","date":"2013-12-10T21:02:00Z","contenttype":"Speeches and Transcripts"},"_2bd2666a07bff01df25e9983f19ceae56178c68d":{"id":"2bd2666a07bff01df25e9983f19ceae56178c68d","title":"Statement by World Bank Group Vice President for Africa Makhtar Diop on the Death of Nelson Mandela","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2013/12/06/statement-by-world-bank-group-vice-president-for-africa-makhtar-diop-on-the-death-of-nelson-mandela","descr":"Statement by World Bank Group Vice President for Africa Makhtar Diop on the Death of Nelson Mandela","keywd":"regions:Africa","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","cqpath":"/content/wb-home/en/news/speech/2013/12/06/statement-by-world-bank-group-vice-president-for-africa-makhtar-diop-on-the-death-of-nelson-mandela","regionname":"Africa","wcmsource":"cq5","content":" As we all have learned by now, Nelson Mandela has died at the age of 95. It is a measure of how much he was revered and admired across Africa and the entire world that the news has evoked such profound feelings of loss and reflection across the globe. Like you, I have been thinking deeply about how much he shaped and changed the history of our continent and also brought hope to the rest of the world that freedom cannot be indefinitely denied to oppressed people wherever they endure injustice and degradation. His courage to stand up for his principles, even at a high personal cost, will remain an eternal example to humanity.Here in Paris, at The Élysée Summit for Peace and Security in Africa, I have just heard tributes to Nelson Mandela from the almost 30 African Heads of State who are here for this important meeting. President Hollande, Dr. Zuma,  President of the African Union Commission, the Prime Minister of Ethiopia as Chair of AU, UN Secretary General Ban Ki-moon, Jose Manuel Barroso, European Commission President, Herman van Rompuy, President of the European Council, and Ms. Maite Nkoana-Mashabane, Foreign Minister of South Africa, have also delivered incredibly moving testimonials and paid their profound respects. I felt very moved and fortunate to be in the same room as these leaders honored the life and times of Nelson Mandela. Our colleagues in South Africa held a remembrance in the office today and will fly their office flags at half-mast until the end of the 10-day official mourning period. Last night, before leaving Japan to fly back across the Pacific to Washington, Jim Kim expressed his condolences on behalf of the Bank Group to Graca Machel, Nelson Mandela’s family, and the South African people, saying that \"the world has lost a man who brought a rainbow of possibilities to a country that was segregated into black and white. But his gifts to humankind remain with us. He taught the world that no matter the sins of the past, no matter the horror of apartheid, the way ahead toward peace was to forgive but not forget, to remember what happened but also to offer a hand in order to start anew.\" A Nelson Mandela memorial rally will be held next Tuesday, December 10 in Johannesburg's FNB stadium, before he will lie in state to receive the respect of the world leaders during December 11-13.So on this saddest of days, let us all give thanks for the life and times of Nelson Mandela, a great and beloved leader who will be greatly missed and shine on for future generations. ","content_1000":" As we all have learned by now, Nelson Mandela has died at the age of 95. It is a measure of how much he was revered and admired across Africa and the entire world that the news has evoked such profound feelings of loss and reflection across the globe. Like you, I have been thinking deeply about how much he shaped and changed the history of our continent and also brought hope to the rest of the world that freedom cannot be indefinitely denied to oppressed people wherever they endure injustice and degradation. His courage to stand up for his principles, even at a high personal cost, will remain an eternal example to humanity.Here in Paris, at The Élysée Summit for Peace and Security in Africa, I have just heard tributes to Nelson Mandela from the almost 30 African Heads of State who are here for this important meeting. President Hollande, Dr. Zuma,  President of the African Union Commission, the Prime Minister of Ethiopia as Chair of AU, UN Secretary General Ban Ki-moon, Jose Manue","displayconttype":"Speeches and Transcripts","originating_unit":"Africa, AFR","originating_unit_exact":"Africa, AFR","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Speeches and Transcripts","node_id":"2bd2666a07bff01df25e9983f19ceae56178c68d","wn_title":"Statement by World Bank Group Vice President for Africa Makhtar Diop on the Death of Nelson Mandela","wn_desc":" As we all have learned by now, Nelson Mandela has died at the age of 95. It is a measure of how much he was revered and admired across Africa and the entire world that the news has evoked such profound feelings of loss and reflection across the globe. Like you, I have been thinking deeply about how much he shaped and changed the history of our continent and also brought hope to the rest of the world that freedom cannot be indefinitely denied to oppressed people wherever they endure injustice and degradation. His courage to stand up for his principles, even at a high personal cost, will remain an eternal example to humanity.Here in Paris, at The Élysée Summit for Peace and Security in Africa, I have just heard tributes to Nelson Mandela from the almost 30 African Heads of State who are here for this important meeting. President Hollande, Dr. Zuma,  President of the African Union Commission, the Prime Minister of Ethiopia as Chair of AU, UN Secretary General Ban Ki-moon, Jose Manuel Barroso, European Commission President, Herman van Rompuy, President of the European Council, and Ms. Maite Nkoana-Mashabane, Foreign Minister of South Africa, have also delivered incredibly moving testimonials and paid their profound respects. I felt very moved and fortunate to be in the same room as these leaders honored the life and times of Nelson Mandela. Our colleagues in South Africa held a remembrance in the office today and will fly their office flags at half-mast until the end of the 10-day official mourning period. Last night, before leaving Japan to fly back across the Pacific to Washington, Jim Kim expressed his condolences on behalf of the Bank Group to Graca Machel, Nelson Mandela’s family, and the South African people, saying that \"the world has lost a man who brought a rainbow of possibilities to a country that was segregated into black and white. But his gifts to humankind remain with us. He taught the world that no matter the sins of the past, no matter the horror of apartheid, the way ahead toward peace was to forgive but not forget, to remember what happened but also to offer a hand in order to start anew.\" A Nelson Mandela memorial rally will be held next Tuesday, December 10 in Johannesburg's FNB stadium, before he will lie in state to receive the respect of the world leaders during December 11-13.So on this saddest of days, let us all give thanks for the life and times of Nelson Mandela, a great and beloved leader who will be greatly missed and shine on for future generations. ","master_date":"2013-12-06T17:25:00Z","master_date_srt":"2013-12-06T17:25:00Z","master_recent_date_srt":"2013-12-06T17:25:00Z","master_recent_date":"2013-12-06T17:25:00Z","masterregion_exact":"Africa","short_description":"Statement by World Bank Group Vice President for Africa Makhtar Diop on the Death of Nelson Mandela","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":" As we all have learned by now, Nelson Mandela has died at the age of 95. It is a measure of how much he was revered and admired across Africa and the entire world that the news has evoked such profound feelings of loss and reflection across the globe. Like you, I have been thinking deeply about how much he shaped and changed the history of our continent and also brought hope to the rest of the world that freedom cannot be indefinitely denied to oppressed people wherever they endure injustice and degradation. His courage to stand up for his principles, even at a high personal cost, will remain an eternal example to humanity.Here in Paris, at The Élysée Summit for Peace and Security in Africa, I have just heard tributes to Nelson Mandela from the almost 30 African Heads of State who are here for this important meeting. President Hollande, Dr. Zuma,  President of the African Union Commission, the Prime Minister of Ethiopia as Chair of AU, UN Secretary General Ban Ki-moon, Jose Manuel Barroso, European Commission President, Herman van Rompuy, President of the European Council, and Ms. Maite Nkoana-Mashabane, Foreign Minister of South Africa, have also delivered incredibly moving testimonials and paid their profound respects. I felt very moved and fortunate to be in the same room as these leaders honored the life and times of Nelson Mandela. Our colleagues in South Africa held a remembrance in the office today and will fly their office flags at half-mast until the end of the 10-day official mourning period. Last night, before leaving Japan to fly back across the Pacific to Washington, Jim Kim expressed his condolences on behalf of the Bank Group to Graca Machel, Nelson Mandela’s family, and the South African people, saying that \"the world has lost a man who brought a rainbow of possibilities to a country that was segregated into black and white. But his gifts to humankind remain with us. He taught the world that no matter the sins of the past, no matter the horror of apartheid, the way ahead toward peace was to forgive but not forget, to remember what happened but also to offer a hand in order to start anew.\" A Nelson Mandela memorial rally will be held next Tuesday, December 10 in Johannesburg's FNB stadium, before he will lie in state to receive the respect of the world leaders during December 11-13.So on this saddest of days, let us all give thanks for the life and times of Nelson Mandela, a great and beloved leader who will be greatly missed and shine on for future generations. ","date":"2013-12-06T17:25:00Z","contenttype":"Speeches and Transcripts"},"_d0ffe6b88bdfd54ba668871e595cef391b5fab54":{"id":"d0ffe6b88bdfd54ba668871e595cef391b5fab54","title":"More Irrigation and Pastoralism Could Transform Africa’s Sahel Region","countrycode":"BF,TD,ML,MR,NE,SN","country":"Mauritania,Niger,Chad,Mali,Senegal,Burkina Faso","country_exact":"Mauritania,Niger,Chad,Mali,Senegal,Burkina Faso","countrycode_exact":"BF,TD,ML,MR,NE,SN","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/opinion/2013/10/28/more-irrigation-and-pastoralism-could-transform-africa-s-sahel-region","count":"Burkina Faso,Chad,Mali,Mauritania,Niger,Senegal","descr":"Two major summits in Mauritania and Senegal this week will focus on the threats and opportunities for pastoralism and irrigation to thrive in Africa.","keywd":"country:Mauritania,country:Niger,country:Chad,subject:climate change,subject:water,country:Mali,subject:agricultural water management,subject:agriculture and food security,country:Senegal,country:Burkina Faso,regions:Africa","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","topic":"Climate Change,Water,Agricultural Water Management,Agriculture And Food Security","cqpath":"/content/wb-home/en/news/opinion/2013/10/28/more-irrigation-and-pastoralism-could-transform-africa-s-sahel-region","regionname":"Africa","wcmsource":"cq5","content":" The Sahel region, a vast arid stretch of land linking six countries in West Africa -- Burkina Faso, Chad, Mali, Mauritania, Niger and Senegal -- is home to some of the most productive pastoralist communities in the world. And yet, assailed by a host of climatic, political and development challenges, their pastoralist way of life is under threat.  Here, over centuries, some 16 million pastoralists have perfected the art of survival in the Sahel, raising sheep and livestock in some of the most harsh and unforgiving environments anywhere on the planet.  Meat yields from the Sahel rival those from some of the best ranches in Australia and the United States.  Currently, half of the meat and two-thirds of the milk produced and consumed in the countries of West Africa originates in the Sahel.  However pastoralism is facing multiple threats.  These include rapid population growth, conflict, volatile food prices, animal diseases, and shrinking grazing areas and water resources. Combined, these factors are steadily jeopardizing the survival of the pastoralists of the Sahel.      Climate change is expected to hit Africa hardest.  It is increasingly likely that scientific warnings that the world could warm by 2°C in the next 20 or 30 years will come true.  In such a case, pastoralism will be imperiled.  The effects on the African continent will be dramatically more devastating under a warming scenario of 4°C.  Desert and aridity define the Sahel, yet its vast water resources are untapped.  In a region where farming is the predominant economic activity, sadly, only 20 percent of the Sahel’s irrigation potential has been developed.  Worse still, one quarter of the area equipped with irrigation lies in a state of disrepair.  Pastoralism matters for Africa’s future particularly in the Sahel.  So does irrigation.  Both affect farming, the dominant industry in the region, which accounts for one-third and more of all economic output in the Sahel. This in turn empowers the women of the Sahel, as women account for the majority of Africa’s farmers.      Supporting pastoralism with more climate smart-policies; reducing vulnerability to drought, flooding and other disasters; and raising more healthy livestock through timely vaccines, are all necessary to help communities adapt to the ecological harshness of the Sahel.   Bringing more water to parched lands in the Sahel will not only improve food production but place more food on family dinner tables, allow farmers to  move from subsistence farming into growing and selling greater quantities of  food crops for higher earnings in local and regional markets. Climate-smart agriculture can increase yields, put more money in farmers’ pockets and help protect biodiversity, improve soil fertility, and conserve the environment.  At a time when the global economy is slowly recovering, we want to prime the engines of growth that really matter.   The World Bank is hosting two major summits in Mauritania and Senegal focused on threats and opportunities for pastoralism and irrigation to thrive in Africa.   I am confident that in Nouakchott and Dakar, we will mobilize new coalitions of countries, development partners, business leaders, and the communities themselves for a new push to transform agriculture with more domestic, regional and international support for pastoralism and irrigation.   It can be done.  Makhtar Diop is the World Bank Group’s Vice President for Africa  ","content_1000":" The Sahel region, a vast arid stretch of land linking six countries in West Africa -- Burkina Faso, Chad, Mali, Mauritania, Niger and Senegal -- is home to some of the most productive pastoralist communities in the world. And yet, assailed by a host of climatic, political and development challenges, their pastoralist way of life is under threat.  Here, over centuries, some 16 million pastoralists have perfected the art of survival in the Sahel, raising sheep and livestock in some of the most harsh and unforgiving environments anywhere on the planet.  Meat yields from the Sahel rival those from some of the best ranches in Australia and the United States.  Currently, half of the meat and two-thirds of the milk produced and consumed in the countries of West Africa originates in the Sahel.  However pastoralism is facing multiple threats.  These include rapid population growth, conflict, volatile food prices, animal diseases, and shrinking grazing areas and water resources. ","displayconttype":"Opinion","originating_unit":"Africa, AFR","originating_unit_exact":"Africa, AFR","displayconttype_exact":"Opinion","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Opinion","node_id":"d0ffe6b88bdfd54ba668871e595cef391b5fab54","wn_title":"More Irrigation and Pastoralism Could Transform Africa’s Sahel Region","wn_desc":" The Sahel region, a vast arid stretch of land linking six countries in West Africa -- Burkina Faso, Chad, Mali, Mauritania, Niger and Senegal -- is home to some of the most productive pastoralist communities in the world. And yet, assailed by a host of climatic, political and development challenges, their pastoralist way of life is under threat.  Here, over centuries, some 16 million pastoralists have perfected the art of survival in the Sahel, raising sheep and livestock in some of the most harsh and unforgiving environments anywhere on the planet.  Meat yields from the Sahel rival those from some of the best ranches in Australia and the United States.  Currently, half of the meat and two-thirds of the milk produced and consumed in the countries of West Africa originates in the Sahel.  However pastoralism is facing multiple threats.  These include rapid population growth, conflict, volatile food prices, animal diseases, and shrinking grazing areas and water resources. Combined, these factors are steadily jeopardizing the survival of the pastoralists of the Sahel.      Climate change is expected to hit Africa hardest.  It is increasingly likely that scientific warnings that the world could warm by 2°C in the next 20 or 30 years will come true.  In such a case, pastoralism will be imperiled.  The effects on the African continent will be dramatically more devastating under a warming scenario of 4°C.  Desert and aridity define the Sahel, yet its vast water resources are untapped.  In a region where farming is the predominant economic activity, sadly, only 20 percent of the Sahel’s irrigation potential has been developed.  Worse still, one quarter of the area equipped with irrigation lies in a state of disrepair.  Pastoralism matters for Africa’s future particularly in the Sahel.  So does irrigation.  Both affect farming, the dominant industry in the region, which accounts for one-third and more of all economic output in the Sahel. This in turn empowers the women of the Sahel, as women account for the majority of Africa’s farmers.      Supporting pastoralism with more climate smart-policies; reducing vulnerability to drought, flooding and other disasters; and raising more healthy livestock through timely vaccines, are all necessary to help communities adapt to the ecological harshness of the Sahel.   Bringing more water to parched lands in the Sahel will not only improve food production but place more food on family dinner tables, allow farmers to  move from subsistence farming into growing and selling greater quantities of  food crops for higher earnings in local and regional markets. Climate-smart agriculture can increase yields, put more money in farmers’ pockets and help protect biodiversity, improve soil fertility, and conserve the environment.  At a time when the global economy is slowly recovering, we want to prime the engines of growth that really matter.   The World Bank is hosting two major summits in Mauritania and Senegal focused on threats and opportunities for pastoralism and irrigation to thrive in Africa.   I am confident that in Nouakchott and Dakar, we will mobilize new coalitions of countries, development partners, business leaders, and the communities themselves for a new push to transform agriculture with more domestic, regional and international support for pastoralism and irrigation.   It can be done.  Makhtar Diop is the World Bank Group’s Vice President for Africa  ","master_date":"2013-10-28T12:12:00Z","master_date_srt":"2013-10-28T12:12:00Z","master_recent_date_srt":"2013-10-28T12:12:00Z","master_recent_date":"2013-10-28T12:12:00Z","masterregion_exact":"Africa","short_description":"Two major summits in Mauritania and Senegal this week will focus on the threats and opportunities for pastoralism and irrigation to thrive in Africa.","masterconttype_exact":"Opinion","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":" The Sahel region, a vast arid stretch of land linking six countries in West Africa -- Burkina Faso, Chad, Mali, Mauritania, Niger and Senegal -- is home to some of the most productive pastoralist communities in the world. And yet, assailed by a host of climatic, political and development challenges, their pastoralist way of life is under threat.  Here, over centuries, some 16 million pastoralists have perfected the art of survival in the Sahel, raising sheep and livestock in some of the most harsh and unforgiving environments anywhere on the planet.  Meat yields from the Sahel rival those from some of the best ranches in Australia and the United States.  Currently, half of the meat and two-thirds of the milk produced and consumed in the countries of West Africa originates in the Sahel.  However pastoralism is facing multiple threats.  These include rapid population growth, conflict, volatile food prices, animal diseases, and shrinking grazing areas and water resources. Combined, these factors are steadily jeopardizing the survival of the pastoralists of the Sahel.      Climate change is expected to hit Africa hardest.  It is increasingly likely that scientific warnings that the world could warm by 2°C in the next 20 or 30 years will come true.  In such a case, pastoralism will be imperiled.  The effects on the African continent will be dramatically more devastating under a warming scenario of 4°C.  Desert and aridity define the Sahel, yet its vast water resources are untapped.  In a region where farming is the predominant economic activity, sadly, only 20 percent of the Sahel’s irrigation potential has been developed.  Worse still, one quarter of the area equipped with irrigation lies in a state of disrepair.  Pastoralism matters for Africa’s future particularly in the Sahel.  So does irrigation.  Both affect farming, the dominant industry in the region, which accounts for one-third and more of all economic output in the Sahel. This in turn empowers the women of the Sahel, as women account for the majority of Africa’s farmers.      Supporting pastoralism with more climate smart-policies; reducing vulnerability to drought, flooding and other disasters; and raising more healthy livestock through timely vaccines, are all necessary to help communities adapt to the ecological harshness of the Sahel.   Bringing more water to parched lands in the Sahel will not only improve food production but place more food on family dinner tables, allow farmers to  move from subsistence farming into growing and selling greater quantities of  food crops for higher earnings in local and regional markets. Climate-smart agriculture can increase yields, put more money in farmers’ pockets and help protect biodiversity, improve soil fertility, and conserve the environment.  At a time when the global economy is slowly recovering, we want to prime the engines of growth that really matter.   The World Bank is hosting two major summits in Mauritania and Senegal focused on threats and opportunities for pastoralism and irrigation to thrive in Africa.   I am confident that in Nouakchott and Dakar, we will mobilize new coalitions of countries, development partners, business leaders, and the communities themselves for a new push to transform agriculture with more domestic, regional and international support for pastoralism and irrigation.   It can be done.  Makhtar Diop is the World Bank Group’s Vice President for Africa  ","date":"2013-10-28T12:12:00Z","contenttype":"Opinion"},"_1243893fa63d7e42e9cb9108b5b7445e22a54f07":{"id":"1243893fa63d7e42e9cb9108b5b7445e22a54f07","title":"Getting Africa’s Infrastructure Built, by World Bank Vice President for Africa Makhtar Diop","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2013/10/10/getting-africa-s-infrastructure-built-by-world-bank-vice-president-for-africa-makhtar-diop","descr":"Getting Africa’s Infrastructure Built, by World Bank Vice President for Africa Makhtar Diop","keywd":"subject:investment climate,subject:infrastructure and growth,regions:Africa","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","topic":"Investment Climate,Infrastructure And Growth","cqpath":"/content/wb-home/en/news/speech/2013/10/10/getting-africa-s-infrastructure-built-by-world-bank-vice-president-for-africa-makhtar-diop","regionname":"Africa","wcmsource":"cq5","content":" It is a pleasure to be with you all again and report back on progress we have made in pursuing the PPP agenda in Africa. This series of events with which we have partnered with Africa Investor provides an important opportunity for us to “check in” on our efforts to support the strong desire you have expressed to me to develop PPPs in your countries. Focus on Transformational Investment The big question for us is how do we mobilize private finance to support Africa’s infrastructure needs? For me this is particularly important in the emphasis I am giving in pushing the transformational agenda in Africa. Public capital is insufficient to finance and execute the transformative projects in power, water and transport that Africa needs. This shortfall has been estimated as much as $50 billion per annum. Not only are the top line numbers large – transformational deals such as Inga 3 will cost more than $10 billion. This is beyond any one single institution’s capacity. Where we are coming from In our Spring Meetings we got together and heard from the public sector side. We heard we still need to address the basics in terms of the institutional settings for PPPs. We heard about your challenges in getting deals to the market, financing the early stages of PPP deals and the challenges of finding good quality private partners. We heard from the private sector side. In particular the financial sector noted that they did not have the right instruments in place to manage risks and liquidity. They can’t attract the international and local capital they know is out there. We also heard that they were not seeing the necessary quality of deals. We have spent some time reflecting on why we are not making as much progress as we would like, although we can pat ourselves a little bit on the back as we are making some progress. It’s nice to report an uptick in PPPs in Africa in 2012. In 2012 in Sub Saharan Africa we doubled our best performance ever from any previous year in the energy sector with 22 PPPs, one which in value terms is just under $5 billion. The energy challenge as we all know is a real priority for Africa. Telecom is still the biggest in value terms but the transport and water sectors continue to disappoint. How can we make more progress? While there are many technical reasons there is no question that political economy reasons lie at the heart of driving the PPP agenda. When we look at the entire PPP value chain – the enabling environment in terms of the rules of the game, capacity to prepare and develop transactions, the financial sector, the construction sector and operational capabilities, we find weaknesses. We find that African involvement in the value chain is weak. This makes it very hard to push PPPs through the political system when benefits are perceived as largely flowing to foreigners. When we look at the sponsors of PPP projects in Africa we estimate well over 90% of them are not of African origin. This is not the pattern in other regions where there is much higher local involvement. We need to rebalance this equation if PPPs are to progress in Africa. Not only is this important to “unlock” PPPs but also to develop Africa’s capital and financial markets as well as its private sector in terms of construction companies, building material suppliers and facilities managers. What are we doing about it? These messages from you as well as our own analysis provide us with a solid agenda to work on and we have begun to make some progress. Given the importance of transformational projects and their nature—they are often regional in nature—we have maintained our efforts in working with the regional organizations. In early September in partnership with UEMOA, France and PPIAF we met with the eight UEMOA countries on a possible “Feuille de Route” or road map forward on developing common approaches and capabilities that will not only help with regional projects but bolster the individual countries PPP capabilities. The pillars we are emphasizing are developing the legal framework, building capacity, incentives to encourage the pipeline and supporting project development. We plan on launching a similar effort with CEMAC in December. In the East there has been a long-standing engagement with EAC and we stand ready to work with SADEC and ECOWAS if requested. This work will help get the basics in place or what we call the enablers. We continue to support PPPs with our national programs in Ghana, Kenya and Nigeria which albeit slowly are now showing some positive signs. Our sector colleagues are also developing project-specific PPPs. Also within the wider Bank Group our colleagues in IFC and MIGA continue to make progress. Our IFC Advisory colleagues currently have 17 PPP advisory mandates in Sub Saharan Africa. Our examination of the PPP value chain suggests this is an area in which we have not focused sufficient attention. Given that much of Africa’s growth is driven out of the natural resource sector and in turn this channels directly into infrastructure – logistics costs are often this sector’s largest cost— or indirectly into infrastructure, there is an important opportunity to build the African capabilities in all aspects of construction, the supply of building materials and the operation of facilities. Just as we have done with other important sectors – agribusiness, light manufacturing and tourism -- we would like to spend some time really understanding the whole PPP value chain. We have some concrete ideas we are advancing with Africa investor to increase private sector participation in infrastructure investment in Africa. At the same time the whole financing project development nexus is an area we have been working on not only at the Africa level but Bank-wide. The Bank as a whole is actively investigating the establishment of a PPP infrastructure development facility and financing fund. It is clear to us in Africa that we need mechanisms to manage risk and liquidity as well as developing projects. Given the weaknesses of capital markets in Africa there is very little local capacity to manage risk through guarantee mechanisms and liquidity through bond issuances. While the Bank and other development partners can step in as we often do – we only have so much capacity. So it is clear we need to do something with these accelerators. If we don’t, the large pension funds, insurance companies, sovereign wealth funds and infrastructure funds that keep telling us they want to invest but struggle will continue to stand on the sidelines. The numbers are huge – Nigeria’s pension funds have $20 billion. Closing remarks In closing we cannot do it all ourselves, we need to work in partnership with you the public sector, the private sector, the financial sector and the other development partners to get PPPs contributing fully to Africa’s infrastructure development. This Strategic Dialogue platform and process with Africa investor is designed to create a free flowing constructive dialogue on actions to achieve this aim and we look forward to today’s discussion and reporting back again at the 2014 Spring  Meetings here in April. ","content_1000":" It is a pleasure to be with you all again and report back on progress we have made in pursuing the PPP agenda in Africa. This series of events with which we have partnered with Africa Investor provides an important opportunity for us to “check in” on our efforts to support the strong desire you have expressed to me to develop PPPs in your countries. Focus on Transformational Investment The big question for us is how do we mobilize private finance to support Africa’s infrastructure needs? For me this is particularly important in the emphasis I am giving in pushing the transformational agenda in Africa. Public capital is insufficient to finance and execute the transformative projects in power, water and transport that Africa needs. This shortfall has been estimated as much as $50 billion per annum. Not only are the top line numbers large – transformational deals such as Inga 3 will cost more than $10 billion. This is beyond any one single institution’s capacity. Where we are coming from","displayconttype":"Speeches and Transcripts","originating_unit":"Africa, AFR","originating_unit_exact":"Africa, AFR","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Speeches and Transcripts","node_id":"1243893fa63d7e42e9cb9108b5b7445e22a54f07","wn_title":"Getting Africa’s Infrastructure Built, by World Bank Vice President for Africa Makhtar Diop","wn_desc":" It is a pleasure to be with you all again and report back on progress we have made in pursuing the PPP agenda in Africa. This series of events with which we have partnered with Africa Investor provides an important opportunity for us to “check in” on our efforts to support the strong desire you have expressed to me to develop PPPs in your countries. Focus on Transformational Investment The big question for us is how do we mobilize private finance to support Africa’s infrastructure needs? For me this is particularly important in the emphasis I am giving in pushing the transformational agenda in Africa. Public capital is insufficient to finance and execute the transformative projects in power, water and transport that Africa needs. This shortfall has been estimated as much as $50 billion per annum. Not only are the top line numbers large – transformational deals such as Inga 3 will cost more than $10 billion. This is beyond any one single institution’s capacity. Where we are coming from In our Spring Meetings we got together and heard from the public sector side. We heard we still need to address the basics in terms of the institutional settings for PPPs. We heard about your challenges in getting deals to the market, financing the early stages of PPP deals and the challenges of finding good quality private partners. We heard from the private sector side. In particular the financial sector noted that they did not have the right instruments in place to manage risks and liquidity. They can’t attract the international and local capital they know is out there. We also heard that they were not seeing the necessary quality of deals. We have spent some time reflecting on why we are not making as much progress as we would like, although we can pat ourselves a little bit on the back as we are making some progress. It’s nice to report an uptick in PPPs in Africa in 2012. In 2012 in Sub Saharan Africa we doubled our best performance ever from any previous year in the energy sector with 22 PPPs, one which in value terms is just under $5 billion. The energy challenge as we all know is a real priority for Africa. Telecom is still the biggest in value terms but the transport and water sectors continue to disappoint. How can we make more progress? While there are many technical reasons there is no question that political economy reasons lie at the heart of driving the PPP agenda. When we look at the entire PPP value chain – the enabling environment in terms of the rules of the game, capacity to prepare and develop transactions, the financial sector, the construction sector and operational capabilities, we find weaknesses. We find that African involvement in the value chain is weak. This makes it very hard to push PPPs through the political system when benefits are perceived as largely flowing to foreigners. When we look at the sponsors of PPP projects in Africa we estimate well over 90% of them are not of African origin. This is not the pattern in other regions where there is much higher local involvement. We need to rebalance this equation if PPPs are to progress in Africa. Not only is this important to “unlock” PPPs but also to develop Africa’s capital and financial markets as well as its private sector in terms of construction companies, building material suppliers and facilities managers. What are we doing about it? These messages from you as well as our own analysis provide us with a solid agenda to work on and we have begun to make some progress. Given the importance of transformational projects and their nature—they are often regional in nature—we have maintained our efforts in working with the regional organizations. In early September in partnership with UEMOA, France and PPIAF we met with the eight UEMOA countries on a possible “Feuille de Route” or road map forward on developing common approaches and capabilities that will not only help with regional projects but bolster the individual countries PPP capabilities. The pillars we are emphasizing are developing the legal framework, building capacity, incentives to encourage the pipeline and supporting project development. We plan on launching a similar effort with CEMAC in December. In the East there has been a long-standing engagement with EAC and we stand ready to work with SADEC and ECOWAS if requested. This work will help get the basics in place or what we call the enablers. We continue to support PPPs with our national programs in Ghana, Kenya and Nigeria which albeit slowly are now showing some positive signs. Our sector colleagues are also developing project-specific PPPs. Also within the wider Bank Group our colleagues in IFC and MIGA continue to make progress. Our IFC Advisory colleagues currently have 17 PPP advisory mandates in Sub Saharan Africa. Our examination of the PPP value chain suggests this is an area in which we have not focused sufficient attention. Given that much of Africa’s growth is driven out of the natural resource sector and in turn this channels directly into infrastructure – logistics costs are often this sector’s largest cost— or indirectly into infrastructure, there is an important opportunity to build the African capabilities in all aspects of construction, the supply of building materials and the operation of facilities. Just as we have done with other important sectors – agribusiness, light manufacturing and tourism -- we would like to spend some time really understanding the whole PPP value chain. We have some concrete ideas we are advancing with Africa investor to increase private sector participation in infrastructure investment in Africa. At the same time the whole financing project development nexus is an area we have been working on not only at the Africa level but Bank-wide. The Bank as a whole is actively investigating the establishment of a PPP infrastructure development facility and financing fund. It is clear to us in Africa that we need mechanisms to manage risk and liquidity as well as developing projects. Given the weaknesses of capital markets in Africa there is very little local capacity to manage risk through guarantee mechanisms and liquidity through bond issuances. While the Bank and other development partners can step in as we often do – we only have so much capacity. So it is clear we need to do something with these accelerators. If we don’t, the large pension funds, insurance companies, sovereign wealth funds and infrastructure funds that keep telling us they want to invest but struggle will continue to stand on the sidelines. The numbers are huge – Nigeria’s pension funds have $20 billion. Closing remarks In closing we cannot do it all ourselves, we need to work in partnership with you the public sector, the private sector, the financial sector and the other development partners to get PPPs contributing fully to Africa’s infrastructure development. This Strategic Dialogue platform and process with Africa investor is designed to create a free flowing constructive dialogue on actions to achieve this aim and we look forward to today’s discussion and reporting back again at the 2014 Spring  Meetings here in April. ","master_date":"2013-10-10T12:28:00Z","master_date_srt":"2013-10-10T12:28:00Z","master_recent_date_srt":"2013-10-10T12:28:00Z","master_recent_date":"2013-10-10T12:28:00Z","masterregion_exact":"Africa","short_description":"Getting Africa’s Infrastructure Built, by World Bank Vice President for Africa Makhtar Diop","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":" It is a pleasure to be with you all again and report back on progress we have made in pursuing the PPP agenda in Africa. This series of events with which we have partnered with Africa Investor provides an important opportunity for us to “check in” on our efforts to support the strong desire you have expressed to me to develop PPPs in your countries. Focus on Transformational Investment The big question for us is how do we mobilize private finance to support Africa’s infrastructure needs? For me this is particularly important in the emphasis I am giving in pushing the transformational agenda in Africa. Public capital is insufficient to finance and execute the transformative projects in power, water and transport that Africa needs. This shortfall has been estimated as much as $50 billion per annum. Not only are the top line numbers large – transformational deals such as Inga 3 will cost more than $10 billion. This is beyond any one single institution’s capacity. Where we are coming from In our Spring Meetings we got together and heard from the public sector side. We heard we still need to address the basics in terms of the institutional settings for PPPs. We heard about your challenges in getting deals to the market, financing the early stages of PPP deals and the challenges of finding good quality private partners. We heard from the private sector side. In particular the financial sector noted that they did not have the right instruments in place to manage risks and liquidity. They can’t attract the international and local capital they know is out there. We also heard that they were not seeing the necessary quality of deals. We have spent some time reflecting on why we are not making as much progress as we would like, although we can pat ourselves a little bit on the back as we are making some progress. It’s nice to report an uptick in PPPs in Africa in 2012. In 2012 in Sub Saharan Africa we doubled our best performance ever from any previous year in the energy sector with 22 PPPs, one which in value terms is just under $5 billion. The energy challenge as we all know is a real priority for Africa. Telecom is still the biggest in value terms but the transport and water sectors continue to disappoint. How can we make more progress? While there are many technical reasons there is no question that political economy reasons lie at the heart of driving the PPP agenda. When we look at the entire PPP value chain – the enabling environment in terms of the rules of the game, capacity to prepare and develop transactions, the financial sector, the construction sector and operational capabilities, we find weaknesses. We find that African involvement in the value chain is weak. This makes it very hard to push PPPs through the political system when benefits are perceived as largely flowing to foreigners. When we look at the sponsors of PPP projects in Africa we estimate well over 90% of them are not of African origin. This is not the pattern in other regions where there is much higher local involvement. We need to rebalance this equation if PPPs are to progress in Africa. Not only is this important to “unlock” PPPs but also to develop Africa’s capital and financial markets as well as its private sector in terms of construction companies, building material suppliers and facilities managers. What are we doing about it? These messages from you as well as our own analysis provide us with a solid agenda to work on and we have begun to make some progress. Given the importance of transformational projects and their nature—they are often regional in nature—we have maintained our efforts in working with the regional organizations. In early September in partnership with UEMOA, France and PPIAF we met with the eight UEMOA countries on a possible “Feuille de Route” or road map forward on developing common approaches and capabilities that will not only help with regional projects but bolster the individual countries PPP capabilities. The pillars we are emphasizing are developing the legal framework, building capacity, incentives to encourage the pipeline and supporting project development. We plan on launching a similar effort with CEMAC in December. In the East there has been a long-standing engagement with EAC and we stand ready to work with SADEC and ECOWAS if requested. This work will help get the basics in place or what we call the enablers. We continue to support PPPs with our national programs in Ghana, Kenya and Nigeria which albeit slowly are now showing some positive signs. Our sector colleagues are also developing project-specific PPPs. Also within the wider Bank Group our colleagues in IFC and MIGA continue to make progress. Our IFC Advisory colleagues currently have 17 PPP advisory mandates in Sub Saharan Africa. Our examination of the PPP value chain suggests this is an area in which we have not focused sufficient attention. Given that much of Africa’s growth is driven out of the natural resource sector and in turn this channels directly into infrastructure – logistics costs are often this sector’s largest cost— or indirectly into infrastructure, there is an important opportunity to build the African capabilities in all aspects of construction, the supply of building materials and the operation of facilities. Just as we have done with other important sectors – agribusiness, light manufacturing and tourism -- we would like to spend some time really understanding the whole PPP value chain. We have some concrete ideas we are advancing with Africa investor to increase private sector participation in infrastructure investment in Africa. At the same time the whole financing project development nexus is an area we have been working on not only at the Africa level but Bank-wide. The Bank as a whole is actively investigating the establishment of a PPP infrastructure development facility and financing fund. It is clear to us in Africa that we need mechanisms to manage risk and liquidity as well as developing projects. Given the weaknesses of capital markets in Africa there is very little local capacity to manage risk through guarantee mechanisms and liquidity through bond issuances. While the Bank and other development partners can step in as we often do – we only have so much capacity. So it is clear we need to do something with these accelerators. If we don’t, the large pension funds, insurance companies, sovereign wealth funds and infrastructure funds that keep telling us they want to invest but struggle will continue to stand on the sidelines. The numbers are huge – Nigeria’s pension funds have $20 billion. Closing remarks In closing we cannot do it all ourselves, we need to work in partnership with you the public sector, the private sector, the financial sector and the other development partners to get PPPs contributing fully to Africa’s infrastructure development. This Strategic Dialogue platform and process with Africa investor is designed to create a free flowing constructive dialogue on actions to achieve this aim and we look forward to today’s discussion and reporting back again at the 2014 Spring  Meetings here in April. ","date":"2013-10-10T12:28:00Z","contenttype":"Speeches and Transcripts"},"_58d8107501ef53e40c2be1cf627b955437dfb2ad":{"id":"58d8107501ef53e40c2be1cf627b955437dfb2ad","title":"Strengthening Agriculture Public Expenditure in Sub Saharan Africa, by World Bank Vice President for Africa Makhtar Diop","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2013/10/10/strengthening-agriculture-public-expenditure-in-sub-saharan-africa","descr":"Strengthening Agriculture Public Expenditure in Sub Saharan Africa, by World Bank Vice President for Africa Makhtar Diop","keywd":"subject:investment climate,subject:agriculture and food security,regions:Africa","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","topic":"Investment Climate,Agriculture And Food Security","cqpath":"/content/wb-home/en/news/speech/2013/10/10/strengthening-agriculture-public-expenditure-in-sub-saharan-africa","regionname":"Africa","wcmsource":"cq5","content":"Dear Ambassador Abebe, Honorable Ministers, Executive Directors and Advisors, Colleagues and Friends,  I would like to welcome you around this table for what I hope will be a very interesting and unique sharing of knowledge on good practices in public spending in agriculture.It is also a pleasure to have the presence of other invited guests from partner institutions with a strong commitment to agriculture on the sub-continent. I would like to acknowledge in particular the contributions of the Bill and Melinda Gates Foundation, represented today by Mr. Alan Rennison, to numerous initiatives improving evidence on what works for public expenditure in the sector, and also the International Food Policy Research Institute, represented by Mr. Ousmane Badiane, Director for Africa.  IFPRI is a key partner in our agricultural work in Africa.Our focus today is on a topic very close to my heart – agriculture in Africa. In my view, agriculture is one of the very key sectors for triggering the economic transformation that could make Africa an economic dynamo in the global economy. The paper we are discussing today analyzes agricultural public expenditures in five African countries -- Burkina Faso, Côte d'Ivoire, Ghana, Liberia and Togo.In Africa, even more so than in other regions in the world, agricultural growth is hugely important to any effort to reduce poverty and promote shared prosperity, given its prominence in the economies of the region.  Economic activity in agriculture typically accounts for 30- 40 percent of GDP and 65-70 percent of labor force – and there is global evidence that productivity improvements in this sector have a poverty impact close to 3 times that of other sectors. Between 2010 and 2050, Sub-Saharan Africa will add 150 million more people in rural areas (a 30 percent increase), creating a real “youth dividend.”  Urban job markets cannot absorb this increase, and agriculture will continue to be dominant sector of employment for years to come. We need a vibrant agricultural sector to create and safeguard these jobs.We have recent diagnostic work carried out by the World Bank and IFPRI that provides evidence that a healthy agricultural sector can provide many paths to employment for these youth.Some will remain on family holdings, in some cases combining work off-farm: 89 percent of rural youth currently work for their families or are self-employed, but these youths are typically poorly educated and unable to tap into their potential.Some would leave their family farms and establish new farms of their own: but to do so they need land, capital, technologies, and advice.Some will start businesses providing services (transport, plant protection, veterinary services, mechanized services, etc.) for new high-value agriculture.  But to do this, they need technical and business skills, and capital.And some will be employed as wage earners on commercial farms or in ancillary services.  But to earn a good living in this, they need training to become skilled workers.To take advantage of this youth dividend, we need policies and investments to create more fluid land markets, including rental markets; enhance education opportunities; help develop credit markets; and improve extension services.  Each of these diverse pathways suggests priorities for public expenditures in agriculture.In recognition that agriculture needs to become a driver for growth in Africa, you all have set a target in the Maputo Declaration to devote 10 percent of your public expenditures to agriculture, and considerable progress has been made towards reaching this goal. To date, Burkina Faso, Ethiopia, Ghana, Guinea, Malawi, Mali, Niger, and Senegal have exceeded this target.On the other hand, I am aware that you, as finance ministers, worry whether you are getting good return from these increased budgets.  Too often, the lion’s share of agricultural budgets have gone to programs that do not yield high returns, but are politically popular, such as indiscriminate input subsidies.But there is firm evidence that there are good public investments in agriculture, which can pave the way for medium- and long-term returns and promote agricultural growth.The Comprehensive African Agricultural Development Program (CAADP) of the African Union has made a commitment to focus on improving the quality of agricultural public investment programs. We know from global studies that for example investments in research to develop and disseminate technological innovations in agriculture yield very high rates of return.  For Sub-Saharan Africa, on average each $100 invested (a one-time expenditure) in agricultural research produces future benefits each year estimated at around $35.  That is a huge rate of return.  We know that in their periods of high growth, economies such as Brazil, India, and China, invested heavily in agricultural research.To illustrate this potential in another way, a recent study found that increasing the spending on national research in African countries by 7 percent per year until it is double the 2005 level would have a bigger impact on total factor productivity growth than would doubling the irrigation area. From the Bank’s side, we are strongly committed to agriculture in Africa.  Our Region has met the targets of the Bank’s Agricultural Action Plan by almost doubling our agricultural lending since the food crisis in 2008, from $700 million to $1.36 billion this past fiscal year.  This is close to 40 percent of the Bank’s total lending to agriculture.And we will continue our support to you on agriculture, including helping you meet your goals for improving the quality of your agricultural public expenditures.Together with the Gates Foundation, we have supported CAADP by undertaking Agricultural Public Expenditure Reviews in a number of countries.  By mid-2014, we will have assisted 18 African countries to complete such analyses. Our partner IFPRI is supporting you to put in place systems to monitor programs for results, which will then feed back into spending policies.Through this forum today, we hope that you will share with us your experiences on public expenditure review processes, and what is needed to improve the quality and effectiveness of public expenditures in agriculture.Thank you and I look forward to a stimulating discussion.","content_1000":"Dear Ambassador Abebe, Honorable Ministers, Executive Directors and Advisors, Colleagues and Friends,  I would like to welcome you around this table for what I hope will be a very interesting and unique sharing of knowledge on good practices in public spending in agriculture.It is also a pleasure to have the presence of other invited guests from partner institutions with a strong commitment to agriculture on the sub-continent. I would like to acknowledge in particular the contributions of the Bill and Melinda Gates Foundation, represented today by Mr. Alan Rennison, to numerous initiatives improving evidence on what works for public expenditure in the sector, and also the International Food Policy Research Institute, represented by Mr. Ousmane Badiane, Director for Africa.  IFPRI is a key partner in our agricultural work in Africa.Our focus today is on a topic very close to my heart – agriculture in Africa. In my view, agriculture is one of the very key sectors for trigg","displayconttype":"Speeches and Transcripts","originating_unit":"Africa, AFR","originating_unit_exact":"Africa, AFR","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Speeches and Transcripts","node_id":"58d8107501ef53e40c2be1cf627b955437dfb2ad","wn_title":"Strengthening Agriculture Public Expenditure in Sub Saharan Africa, by World Bank Vice President for Africa Makhtar Diop","wn_desc":"Dear Ambassador Abebe, Honorable Ministers, Executive Directors and Advisors, Colleagues and Friends,  I would like to welcome you around this table for what I hope will be a very interesting and unique sharing of knowledge on good practices in public spending in agriculture.It is also a pleasure to have the presence of other invited guests from partner institutions with a strong commitment to agriculture on the sub-continent. I would like to acknowledge in particular the contributions of the Bill and Melinda Gates Foundation, represented today by Mr. Alan Rennison, to numerous initiatives improving evidence on what works for public expenditure in the sector, and also the International Food Policy Research Institute, represented by Mr. Ousmane Badiane, Director for Africa.  IFPRI is a key partner in our agricultural work in Africa.Our focus today is on a topic very close to my heart – agriculture in Africa. In my view, agriculture is one of the very key sectors for triggering the economic transformation that could make Africa an economic dynamo in the global economy. The paper we are discussing today analyzes agricultural public expenditures in five African countries -- Burkina Faso, Côte d'Ivoire, Ghana, Liberia and Togo.In Africa, even more so than in other regions in the world, agricultural growth is hugely important to any effort to reduce poverty and promote shared prosperity, given its prominence in the economies of the region.  Economic activity in agriculture typically accounts for 30- 40 percent of GDP and 65-70 percent of labor force – and there is global evidence that productivity improvements in this sector have a poverty impact close to 3 times that of other sectors. Between 2010 and 2050, Sub-Saharan Africa will add 150 million more people in rural areas (a 30 percent increase), creating a real “youth dividend.”  Urban job markets cannot absorb this increase, and agriculture will continue to be dominant sector of employment for years to come. We need a vibrant agricultural sector to create and safeguard these jobs.We have recent diagnostic work carried out by the World Bank and IFPRI that provides evidence that a healthy agricultural sector can provide many paths to employment for these youth.Some will remain on family holdings, in some cases combining work off-farm: 89 percent of rural youth currently work for their families or are self-employed, but these youths are typically poorly educated and unable to tap into their potential.Some would leave their family farms and establish new farms of their own: but to do so they need land, capital, technologies, and advice.Some will start businesses providing services (transport, plant protection, veterinary services, mechanized services, etc.) for new high-value agriculture.  But to do this, they need technical and business skills, and capital.And some will be employed as wage earners on commercial farms or in ancillary services.  But to earn a good living in this, they need training to become skilled workers.To take advantage of this youth dividend, we need policies and investments to create more fluid land markets, including rental markets; enhance education opportunities; help develop credit markets; and improve extension services.  Each of these diverse pathways suggests priorities for public expenditures in agriculture.In recognition that agriculture needs to become a driver for growth in Africa, you all have set a target in the Maputo Declaration to devote 10 percent of your public expenditures to agriculture, and considerable progress has been made towards reaching this goal. To date, Burkina Faso, Ethiopia, Ghana, Guinea, Malawi, Mali, Niger, and Senegal have exceeded this target.On the other hand, I am aware that you, as finance ministers, worry whether you are getting good return from these increased budgets.  Too often, the lion’s share of agricultural budgets have gone to programs that do not yield high returns, but are politically popular, such as indiscriminate input subsidies.But there is firm evidence that there are good public investments in agriculture, which can pave the way for medium- and long-term returns and promote agricultural growth.The Comprehensive African Agricultural Development Program (CAADP) of the African Union has made a commitment to focus on improving the quality of agricultural public investment programs. We know from global studies that for example investments in research to develop and disseminate technological innovations in agriculture yield very high rates of return.  For Sub-Saharan Africa, on average each $100 invested (a one-time expenditure) in agricultural research produces future benefits each year estimated at around $35.  That is a huge rate of return.  We know that in their periods of high growth, economies such as Brazil, India, and China, invested heavily in agricultural research.To illustrate this potential in another way, a recent study found that increasing the spending on national research in African countries by 7 percent per year until it is double the 2005 level would have a bigger impact on total factor productivity growth than would doubling the irrigation area. From the Bank’s side, we are strongly committed to agriculture in Africa.  Our Region has met the targets of the Bank’s Agricultural Action Plan by almost doubling our agricultural lending since the food crisis in 2008, from $700 million to $1.36 billion this past fiscal year.  This is close to 40 percent of the Bank’s total lending to agriculture.And we will continue our support to you on agriculture, including helping you meet your goals for improving the quality of your agricultural public expenditures.Together with the Gates Foundation, we have supported CAADP by undertaking Agricultural Public Expenditure Reviews in a number of countries.  By mid-2014, we will have assisted 18 African countries to complete such analyses. Our partner IFPRI is supporting you to put in place systems to monitor programs for results, which will then feed back into spending policies.Through this forum today, we hope that you will share with us your experiences on public expenditure review processes, and what is needed to improve the quality and effectiveness of public expenditures in agriculture.Thank you and I look forward to a stimulating discussion.","master_date":"2013-10-10T12:28:00Z","master_date_srt":"2013-10-10T12:28:00Z","master_recent_date_srt":"2013-10-10T12:28:00Z","master_recent_date":"2013-10-10T12:28:00Z","masterregion_exact":"Africa","short_description":"Strengthening Agriculture Public Expenditure in Sub Saharan Africa, by World Bank Vice President for Africa Makhtar Diop","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":"Dear Ambassador Abebe, Honorable Ministers, Executive Directors and Advisors, Colleagues and Friends,  I would like to welcome you around this table for what I hope will be a very interesting and unique sharing of knowledge on good practices in public spending in agriculture.It is also a pleasure to have the presence of other invited guests from partner institutions with a strong commitment to agriculture on the sub-continent. I would like to acknowledge in particular the contributions of the Bill and Melinda Gates Foundation, represented today by Mr. Alan Rennison, to numerous initiatives improving evidence on what works for public expenditure in the sector, and also the International Food Policy Research Institute, represented by Mr. Ousmane Badiane, Director for Africa.  IFPRI is a key partner in our agricultural work in Africa.Our focus today is on a topic very close to my heart – agriculture in Africa. In my view, agriculture is one of the very key sectors for triggering the economic transformation that could make Africa an economic dynamo in the global economy. The paper we are discussing today analyzes agricultural public expenditures in five African countries -- Burkina Faso, Côte d'Ivoire, Ghana, Liberia and Togo.In Africa, even more so than in other regions in the world, agricultural growth is hugely important to any effort to reduce poverty and promote shared prosperity, given its prominence in the economies of the region.  Economic activity in agriculture typically accounts for 30- 40 percent of GDP and 65-70 percent of labor force – and there is global evidence that productivity improvements in this sector have a poverty impact close to 3 times that of other sectors. Between 2010 and 2050, Sub-Saharan Africa will add 150 million more people in rural areas (a 30 percent increase), creating a real “youth dividend.”  Urban job markets cannot absorb this increase, and agriculture will continue to be dominant sector of employment for years to come. We need a vibrant agricultural sector to create and safeguard these jobs.We have recent diagnostic work carried out by the World Bank and IFPRI that provides evidence that a healthy agricultural sector can provide many paths to employment for these youth.Some will remain on family holdings, in some cases combining work off-farm: 89 percent of rural youth currently work for their families or are self-employed, but these youths are typically poorly educated and unable to tap into their potential.Some would leave their family farms and establish new farms of their own: but to do so they need land, capital, technologies, and advice.Some will start businesses providing services (transport, plant protection, veterinary services, mechanized services, etc.) for new high-value agriculture.  But to do this, they need technical and business skills, and capital.And some will be employed as wage earners on commercial farms or in ancillary services.  But to earn a good living in this, they need training to become skilled workers.To take advantage of this youth dividend, we need policies and investments to create more fluid land markets, including rental markets; enhance education opportunities; help develop credit markets; and improve extension services.  Each of these diverse pathways suggests priorities for public expenditures in agriculture.In recognition that agriculture needs to become a driver for growth in Africa, you all have set a target in the Maputo Declaration to devote 10 percent of your public expenditures to agriculture, and considerable progress has been made towards reaching this goal. To date, Burkina Faso, Ethiopia, Ghana, Guinea, Malawi, Mali, Niger, and Senegal have exceeded this target.On the other hand, I am aware that you, as finance ministers, worry whether you are getting good return from these increased budgets.  Too often, the lion’s share of agricultural budgets have gone to programs that do not yield high returns, but are politically popular, such as indiscriminate input subsidies.But there is firm evidence that there are good public investments in agriculture, which can pave the way for medium- and long-term returns and promote agricultural growth.The Comprehensive African Agricultural Development Program (CAADP) of the African Union has made a commitment to focus on improving the quality of agricultural public investment programs. We know from global studies that for example investments in research to develop and disseminate technological innovations in agriculture yield very high rates of return.  For Sub-Saharan Africa, on average each $100 invested (a one-time expenditure) in agricultural research produces future benefits each year estimated at around $35.  That is a huge rate of return.  We know that in their periods of high growth, economies such as Brazil, India, and China, invested heavily in agricultural research.To illustrate this potential in another way, a recent study found that increasing the spending on national research in African countries by 7 percent per year until it is double the 2005 level would have a bigger impact on total factor productivity growth than would doubling the irrigation area. From the Bank’s side, we are strongly committed to agriculture in Africa.  Our Region has met the targets of the Bank’s Agricultural Action Plan by almost doubling our agricultural lending since the food crisis in 2008, from $700 million to $1.36 billion this past fiscal year.  This is close to 40 percent of the Bank’s total lending to agriculture.And we will continue our support to you on agriculture, including helping you meet your goals for improving the quality of your agricultural public expenditures.Together with the Gates Foundation, we have supported CAADP by undertaking Agricultural Public Expenditure Reviews in a number of countries.  By mid-2014, we will have assisted 18 African countries to complete such analyses. Our partner IFPRI is supporting you to put in place systems to monitor programs for results, which will then feed back into spending policies.Through this forum today, we hope that you will share with us your experiences on public expenditure review processes, and what is needed to improve the quality and effectiveness of public expenditures in agriculture.Thank you and I look forward to a stimulating discussion.","date":"2013-10-10T12:28:00Z","contenttype":"Speeches and Transcripts"},"_5ccb23162988cf8beae6e026cbb4d92e80cf405a":{"id":"5ccb23162988cf8beae6e026cbb4d92e80cf405a","title":"Private Sector Solutions for the Water Crisis in Agriculture by World Bank Vice President for Africa Makhtar Diop","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2013/10/09/private-sector-solutions-for-the-water-crisis-in-agriculture-by-world-bank-vice-president-for-africa-makhtar-diop","descr":"Private Sector Solutions for the Water Crisis in Agriculture by World Bank Vice President for Africa Makhtar Diop","keywd":"subject:private sector development,subject:water,subject:agriculture and food security,regions:Africa","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","topic":"Private Sector Development,Water,Agriculture And Food Security","cqpath":"/content/wb-home/en/news/speech/2013/10/09/private-sector-solutions-for-the-water-crisis-in-agriculture-by-world-bank-vice-president-for-africa-makhtar-diop","regionname":"Africa","wcmsource":"cq5","content":" Good afternoon and thank you for the kind invitation. Sub-Saharan Africa stands at the cusp of a transformative opportunity … thanks to its patrimony of plentiful land and water resources, as well as its large and growing labor force. Africa has nearly half of the world’s fertile land that is yet to be brought under cultivation – some 202 million hectares of arable land that is non-protected, non-forested with low population density. While some areas of the continent are hyper-arid, arid or semi-arid, on average, Africa’s bountiful water resources are underutilized. Sub-Saharan Africa currently uses only two to three percent of renewable water resources, compared to five percent worldwide. A new World Bank study on agribusiness has predicted that Africa’s food and beverage markets are set to top one trillion dollars by 2030, up from only $313 billion today. But too much of the food consumed in Africa is imported, denying opportunities for local producers and causing a drain on scarce foreign exchange. This presents a huge opportunity to grow more food through sustainable agriculture and feed Africans with better quality, more nutritious food. It also presents an opportunity to create wealth for farmers through expanding markets and trade, and benefit consumers through cheaper, more diverse food products. So what is holding us back? How can we grasp the trillion-dollar opportunity that lies within reach? How can new public-private partnerships get us from here to there? As a development practitioner committed to finding solutions, I see the need to focus attention on binding constraints that are keeping a particular sector from achieving its full potential. Many development experts agree that underinvestment in irrigation has long held back the productivity, profitability and sustainability of African agriculture. Underinvestment in irrigation is one of the reasons why the Green Revolution that transformed agriculture in the tropics of Asia and Latin America bypassed Africa. Clearly, other factors – more heterogeneous production environments, inadequate research capacity, lack of technology, poor policies, and weak institutions – also had a role to play, but the inability of farmers to irrigate their crops stands out. The numbers are stark. Of the some 183 million hectares of cultivated land in Sub-Saharan Africa, over 95 percent is rain-fed, and less than five percent benefits from some forms of agricultural water management practices. Of the 7.1 million hectares that are equipped for irrigation, nearly one-third is no longer functioning due to lack of maintenance, and only 5.3 million hectares can be considered usable. So as one can see, there is an enormous opportunity to achieve transformational impact by bringing more irrigation to parched lands. But along with the opportunity come a number of challenges. Water resources are available, but they are not limitless. Agriculture is the largest user of the world’s freshwater resources: anywhere between 80 to 90 percent of fresh water withdrawals are used to irrigate crops and grow food. And agriculture is also a notoriously inefficient user of water. Take irrigated rice. I hail from Senegal, where rice literally means food for millions of people. The same is true for Senegal’s neighbors. Rice is West Africa’s most important food import at a cost exceeding $3.5 billion annually. According to one estimate, only 3.5 million hectares of the roughly 240 million hectares suitable for wetland rice cultivation in West Africa have been exploited. Therefore a huge market opportunity remains unexploited. However, growing rice requires lots of water. Up to 2,500 liters of water are needed to produce one kilogram of rice. While rice is an extreme example, suffice it to say that by bringing modern irrigation techniques including drip irrigation and micro irrigation, we can reduce water use substantially for growing food crops, meet the threat posed by climate change and reduce agriculture’s environmental footprint through climate smart agriculture. It is in this context that companies such as Netafim can bring the needed water-saving technologies that will help to make a difference, put more food on people’s plates and ensure that every drop of precious water goes to the plant. For its part, the World Bank Group is working with client countries to improve the productivity and profitability of the agriculture sector. We have increased our lending, and in fiscal year 2013, our commitment to agriculture and related sectors has topped $1.3 billion. Our aim is to double the irrigated area, and the corresponding investment cost is roughly estimated at $40 billion of which the Bank could finance 25 percent. Specifically in the Sahel, we want to expand irrigated area from 400,000 hectares to one million hectares. And we are keen to collaborate with the private sector in irrigation investments through public- private partnerships similar to Burkina’s Bagre Growth Pole project and Senegal’s Sustainable and Inclusive Agribusiness Development project that is under preparation. Later this month, we are hosting two major conferences – on pastoralism in Nouakchott and water for irrigation in Dakar – focused exclusively on the development challenges confronting the Sahel. We want to move from traditional crisis-response modes toward a more proactive stance that helps communities to cope and adapt, build resilience, and achieve more durable development solutions. Water is central to life and to agriculture. Given Africa’s generous water resources endowment, I am confident that Netafim’s success stories from Mexico and Peru can be applied in Africa. Let us take the opportunity of our meeting today at IFC to forge the next generation of public-private partnerships needed to bring about transformational change. Let us work together to bring the benefits of modern irrigation technologies to African farmers. It can be done. Thank you. ","content_1000":" Good afternoon and thank you for the kind invitation. Sub-Saharan Africa stands at the cusp of a transformative opportunity … thanks to its patrimony of plentiful land and water resources, as well as its large and growing labor force. Africa has nearly half of the world’s fertile land that is yet to be brought under cultivation – some 202 million hectares of arable land that is non-protected, non-forested with low population density. While some areas of the continent are hyper-arid, arid or semi-arid, on average, Africa’s bountiful water resources are underutilized. Sub-Saharan Africa currently uses only two to three percent of renewable water resources, compared to five percent worldwide. A new World Bank study on agribusiness has predicted that Africa’s food and beverage markets are set to top one trillion dollars by 2030, up from only $313 billion today. But too much of the food consumed in Africa is imported, denying opportunities for local producers and causing a drain on scarce ","displayconttype":"Speeches and Transcripts","originating_unit":"Africa, AFR","originating_unit_exact":"Africa, AFR","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Speeches and Transcripts","node_id":"5ccb23162988cf8beae6e026cbb4d92e80cf405a","wn_title":"Private Sector Solutions for the Water Crisis in Agriculture by World Bank Vice President for Africa Makhtar Diop","wn_desc":" Good afternoon and thank you for the kind invitation. Sub-Saharan Africa stands at the cusp of a transformative opportunity … thanks to its patrimony of plentiful land and water resources, as well as its large and growing labor force. Africa has nearly half of the world’s fertile land that is yet to be brought under cultivation – some 202 million hectares of arable land that is non-protected, non-forested with low population density. While some areas of the continent are hyper-arid, arid or semi-arid, on average, Africa’s bountiful water resources are underutilized. Sub-Saharan Africa currently uses only two to three percent of renewable water resources, compared to five percent worldwide. A new World Bank study on agribusiness has predicted that Africa’s food and beverage markets are set to top one trillion dollars by 2030, up from only $313 billion today. But too much of the food consumed in Africa is imported, denying opportunities for local producers and causing a drain on scarce foreign exchange. This presents a huge opportunity to grow more food through sustainable agriculture and feed Africans with better quality, more nutritious food. It also presents an opportunity to create wealth for farmers through expanding markets and trade, and benefit consumers through cheaper, more diverse food products. So what is holding us back? How can we grasp the trillion-dollar opportunity that lies within reach? How can new public-private partnerships get us from here to there? As a development practitioner committed to finding solutions, I see the need to focus attention on binding constraints that are keeping a particular sector from achieving its full potential. Many development experts agree that underinvestment in irrigation has long held back the productivity, profitability and sustainability of African agriculture. Underinvestment in irrigation is one of the reasons why the Green Revolution that transformed agriculture in the tropics of Asia and Latin America bypassed Africa. Clearly, other factors – more heterogeneous production environments, inadequate research capacity, lack of technology, poor policies, and weak institutions – also had a role to play, but the inability of farmers to irrigate their crops stands out. The numbers are stark. Of the some 183 million hectares of cultivated land in Sub-Saharan Africa, over 95 percent is rain-fed, and less than five percent benefits from some forms of agricultural water management practices. Of the 7.1 million hectares that are equipped for irrigation, nearly one-third is no longer functioning due to lack of maintenance, and only 5.3 million hectares can be considered usable. So as one can see, there is an enormous opportunity to achieve transformational impact by bringing more irrigation to parched lands. But along with the opportunity come a number of challenges. Water resources are available, but they are not limitless. Agriculture is the largest user of the world’s freshwater resources: anywhere between 80 to 90 percent of fresh water withdrawals are used to irrigate crops and grow food. And agriculture is also a notoriously inefficient user of water. Take irrigated rice. I hail from Senegal, where rice literally means food for millions of people. The same is true for Senegal’s neighbors. Rice is West Africa’s most important food import at a cost exceeding $3.5 billion annually. According to one estimate, only 3.5 million hectares of the roughly 240 million hectares suitable for wetland rice cultivation in West Africa have been exploited. Therefore a huge market opportunity remains unexploited. However, growing rice requires lots of water. Up to 2,500 liters of water are needed to produce one kilogram of rice. While rice is an extreme example, suffice it to say that by bringing modern irrigation techniques including drip irrigation and micro irrigation, we can reduce water use substantially for growing food crops, meet the threat posed by climate change and reduce agriculture’s environmental footprint through climate smart agriculture. It is in this context that companies such as Netafim can bring the needed water-saving technologies that will help to make a difference, put more food on people’s plates and ensure that every drop of precious water goes to the plant. For its part, the World Bank Group is working with client countries to improve the productivity and profitability of the agriculture sector. We have increased our lending, and in fiscal year 2013, our commitment to agriculture and related sectors has topped $1.3 billion. Our aim is to double the irrigated area, and the corresponding investment cost is roughly estimated at $40 billion of which the Bank could finance 25 percent. Specifically in the Sahel, we want to expand irrigated area from 400,000 hectares to one million hectares. And we are keen to collaborate with the private sector in irrigation investments through public- private partnerships similar to Burkina’s Bagre Growth Pole project and Senegal’s Sustainable and Inclusive Agribusiness Development project that is under preparation. Later this month, we are hosting two major conferences – on pastoralism in Nouakchott and water for irrigation in Dakar – focused exclusively on the development challenges confronting the Sahel. We want to move from traditional crisis-response modes toward a more proactive stance that helps communities to cope and adapt, build resilience, and achieve more durable development solutions. Water is central to life and to agriculture. Given Africa’s generous water resources endowment, I am confident that Netafim’s success stories from Mexico and Peru can be applied in Africa. Let us take the opportunity of our meeting today at IFC to forge the next generation of public-private partnerships needed to bring about transformational change. Let us work together to bring the benefits of modern irrigation technologies to African farmers. It can be done. Thank you. ","master_date":"2013-10-09T12:28:00Z","master_date_srt":"2013-10-09T12:28:00Z","master_recent_date_srt":"2013-10-09T12:28:00Z","master_recent_date":"2013-10-09T12:28:00Z","masterregion_exact":"Africa","short_description":"Private Sector Solutions for the Water Crisis in Agriculture by World Bank Vice President for Africa Makhtar Diop","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":" Good afternoon and thank you for the kind invitation. Sub-Saharan Africa stands at the cusp of a transformative opportunity … thanks to its patrimony of plentiful land and water resources, as well as its large and growing labor force. Africa has nearly half of the world’s fertile land that is yet to be brought under cultivation – some 202 million hectares of arable land that is non-protected, non-forested with low population density. While some areas of the continent are hyper-arid, arid or semi-arid, on average, Africa’s bountiful water resources are underutilized. Sub-Saharan Africa currently uses only two to three percent of renewable water resources, compared to five percent worldwide. A new World Bank study on agribusiness has predicted that Africa’s food and beverage markets are set to top one trillion dollars by 2030, up from only $313 billion today. But too much of the food consumed in Africa is imported, denying opportunities for local producers and causing a drain on scarce foreign exchange. This presents a huge opportunity to grow more food through sustainable agriculture and feed Africans with better quality, more nutritious food. It also presents an opportunity to create wealth for farmers through expanding markets and trade, and benefit consumers through cheaper, more diverse food products. So what is holding us back? How can we grasp the trillion-dollar opportunity that lies within reach? How can new public-private partnerships get us from here to there? As a development practitioner committed to finding solutions, I see the need to focus attention on binding constraints that are keeping a particular sector from achieving its full potential. Many development experts agree that underinvestment in irrigation has long held back the productivity, profitability and sustainability of African agriculture. Underinvestment in irrigation is one of the reasons why the Green Revolution that transformed agriculture in the tropics of Asia and Latin America bypassed Africa. Clearly, other factors – more heterogeneous production environments, inadequate research capacity, lack of technology, poor policies, and weak institutions – also had a role to play, but the inability of farmers to irrigate their crops stands out. The numbers are stark. Of the some 183 million hectares of cultivated land in Sub-Saharan Africa, over 95 percent is rain-fed, and less than five percent benefits from some forms of agricultural water management practices. Of the 7.1 million hectares that are equipped for irrigation, nearly one-third is no longer functioning due to lack of maintenance, and only 5.3 million hectares can be considered usable. So as one can see, there is an enormous opportunity to achieve transformational impact by bringing more irrigation to parched lands. But along with the opportunity come a number of challenges. Water resources are available, but they are not limitless. Agriculture is the largest user of the world’s freshwater resources: anywhere between 80 to 90 percent of fresh water withdrawals are used to irrigate crops and grow food. And agriculture is also a notoriously inefficient user of water. Take irrigated rice. I hail from Senegal, where rice literally means food for millions of people. The same is true for Senegal’s neighbors. Rice is West Africa’s most important food import at a cost exceeding $3.5 billion annually. According to one estimate, only 3.5 million hectares of the roughly 240 million hectares suitable for wetland rice cultivation in West Africa have been exploited. Therefore a huge market opportunity remains unexploited. However, growing rice requires lots of water. Up to 2,500 liters of water are needed to produce one kilogram of rice. While rice is an extreme example, suffice it to say that by bringing modern irrigation techniques including drip irrigation and micro irrigation, we can reduce water use substantially for growing food crops, meet the threat posed by climate change and reduce agriculture’s environmental footprint through climate smart agriculture. It is in this context that companies such as Netafim can bring the needed water-saving technologies that will help to make a difference, put more food on people’s plates and ensure that every drop of precious water goes to the plant. For its part, the World Bank Group is working with client countries to improve the productivity and profitability of the agriculture sector. We have increased our lending, and in fiscal year 2013, our commitment to agriculture and related sectors has topped $1.3 billion. Our aim is to double the irrigated area, and the corresponding investment cost is roughly estimated at $40 billion of which the Bank could finance 25 percent. Specifically in the Sahel, we want to expand irrigated area from 400,000 hectares to one million hectares. And we are keen to collaborate with the private sector in irrigation investments through public- private partnerships similar to Burkina’s Bagre Growth Pole project and Senegal’s Sustainable and Inclusive Agribusiness Development project that is under preparation. Later this month, we are hosting two major conferences – on pastoralism in Nouakchott and water for irrigation in Dakar – focused exclusively on the development challenges confronting the Sahel. We want to move from traditional crisis-response modes toward a more proactive stance that helps communities to cope and adapt, build resilience, and achieve more durable development solutions. Water is central to life and to agriculture. Given Africa’s generous water resources endowment, I am confident that Netafim’s success stories from Mexico and Peru can be applied in Africa. Let us take the opportunity of our meeting today at IFC to forge the next generation of public-private partnerships needed to bring about transformational change. Let us work together to bring the benefits of modern irrigation technologies to African farmers. It can be done. Thank you. ","date":"2013-10-09T12:28:00Z","contenttype":"Speeches and Transcripts"},"_4d81da21ecca8f255ff7f3d7f2f055120ea217ee":{"id":"4d81da21ecca8f255ff7f3d7f2f055120ea217ee","title":"Securing Africa’s Land for Shared Prosperity","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/opinion/2013/07/22/securing-africa-s-land-for-shared-prosperity","descr":"\"The last decade has witnessed an increase in concerted efforts by African countries and development partners to undertake land policy reforms and to pilot innovative approaches to improve land governance.\" - Makhtar Diop","keywd":"subject:governance in public sector,regions:Africa","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","topic":"Governance In Public Sector","cqpath":"/content/wb-home/en/news/opinion/2013/07/22/securing-africa-s-land-for-shared-prosperity","regionname":"Africa","wcmsource":"cq5","content":" Few development challenges in Africa are as pressing and controversial as land ownership and its persistent gap between rich and poor communities. With a profound demographic shift in Africa from rural areas to the cities where half of all Africans will live by 2050, these gaps will become steadily more pronounced as governments and communities rise to the challenge of growing enough affordable nutritious food for all families to thrive on the continent. In some countries in the region, these gaps—allied as they are with high poverty rates and large-scale unemployment—have become sufficiently wide to undermine shared growth and social cohesion. Women are especially vulnerable. They make up 70 percent of Africa’s farmers and yet, for the most part, are locked out of land ownership by customary laws. Without a title to the land they farm, women are unable to raise the money needed to improve their small harvests or to raise living standards. This injurious legacy perpetuates poverty and blights the lives of women who are the backbone of Africa’s farming, present and future. Many countries around the world have grappled with the challenge of landlessness and inequality of land ownership. However, in Africa, which has 202 million hectares or half the world’s total holdings of useable uncultivated fertile land, it is accentuated by extremely low agricultural productivity—only 25 percent of potential. Despite this abundant land and mineral wealth, much of Africa remains poor and too few countries have been able to translate their rapid economic growth into significantly less poverty and more opportunity. A timely new World Bank report—Securing Africa’s Land for Shared Prosperity: a Program to Scale Up Reforms and Investments—suggests that poor land governance, the system that determines and administers land rights, may lie at the root of this grievous problem. For example, the vast majority of African countries are using land administration systems they inherited at independence, along with survey and mapping techniques that are antiquated. Not surprisingly, only 10 percent of Africa’s rural land is registered. The remaining 90 percent is undocumented and informally administered, which makes it susceptible to land grabbing, expropriation without fair compensation, and corruption. Again these consequences fall hardest on women farmers who are often the only breadwinners in their families. Undocumented land is also a problem in Africa’s cities, now increasingly the destination for millions of former rural dwellers. The inhabitants of Africa’s booming cities need secure access to land to live legally without fear of eviction. This is where scaled-up land registration combined with legal recognition of the rights of squatters on public lands, would greatly improve the lives of poor families and their ability to tend communal gardens, improve urban agriculture, and run profitable businesses. Fortunately, there are successful examples worldwide of countries that have improved their land governance and revolutionized agriculture. For example, in 1978, China dismantled collective farms and used long-term leases to confer land rights on households, which launched an era of prolonged agricultural growth that transformed rural China and led to the largest reduction in poverty in history. In Argentina, Indonesia, and the Philippines, legal recognition of land rights for residents in slum areas have improved the quality of their housing and the value of their plots. Based on such worldwide experience and encouraging evidence from country pilots in African countries such as Ghana, Malawi, Mozambique, Tanzania, and Uganda, this new report suggests a series of ten steps that may help to revolutionize agricultural production and eradicate poverty in Africa. These steps include improving tenure security over individual and communal lands, increasing land access and tenure for poor and vulnerable families, resolving land disputes, managing better public land, and increasing efficiency and transparency in land administration services. Although poor land governance is daunting, the problem is not insurmountable. The last decade has witnessed an increase in concerted efforts by African countries and development partners to undertake land policy reforms and to pilot innovative approaches to improve land governance. Many of these countries either have legislation in place or initiatives in progress to address communal land rights and gender equality, the basis for sound land administration. Surges in commodity prices and foreign direct investment have increased the potential return on investment in land administration. We must match the evidence in this report with the political will and leadership to transform African agriculture and Africa’s development prospects. The opportunity to resolve the continent’s long-running struggle with land ownership and productivity has never been better. The time for action is now. Makhtar Diop is the World Bank Group’s Vice President for Africa  ","content_1000":" Few development challenges in Africa are as pressing and controversial as land ownership and its persistent gap between rich and poor communities. With a profound demographic shift in Africa from rural areas to the cities where half of all Africans will live by 2050, these gaps will become steadily more pronounced as governments and communities rise to the challenge of growing enough affordable nutritious food for all families to thrive on the continent. In some countries in the region, these gaps—allied as they are with high poverty rates and large-scale unemployment—have become sufficiently wide to undermine shared growth and social cohesion. Women are especially vulnerable. They make up 70 percent of Africa’s farmers and yet, for the most part, are locked out of land ownership by customary laws. Without a title to the land they farm, women are unable to raise the money needed to improve their small harvests or to raise living standards. This injurious legacy perpetuates poverty and","displayconttype":"Opinion","originating_unit":"ECRCC","originating_unit_exact":"ECRCC","displayconttype_exact":"Opinion","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Opinion","masterupi":"000112890","node_id":"4d81da21ecca8f255ff7f3d7f2f055120ea217ee","wn_title":"Securing Africa’s Land for Shared Prosperity","wn_desc":" Few development challenges in Africa are as pressing and controversial as land ownership and its persistent gap between rich and poor communities. With a profound demographic shift in Africa from rural areas to the cities where half of all Africans will live by 2050, these gaps will become steadily more pronounced as governments and communities rise to the challenge of growing enough affordable nutritious food for all families to thrive on the continent. In some countries in the region, these gaps—allied as they are with high poverty rates and large-scale unemployment—have become sufficiently wide to undermine shared growth and social cohesion. Women are especially vulnerable. They make up 70 percent of Africa’s farmers and yet, for the most part, are locked out of land ownership by customary laws. Without a title to the land they farm, women are unable to raise the money needed to improve their small harvests or to raise living standards. This injurious legacy perpetuates poverty and blights the lives of women who are the backbone of Africa’s farming, present and future. Many countries around the world have grappled with the challenge of landlessness and inequality of land ownership. However, in Africa, which has 202 million hectares or half the world’s total holdings of useable uncultivated fertile land, it is accentuated by extremely low agricultural productivity—only 25 percent of potential. Despite this abundant land and mineral wealth, much of Africa remains poor and too few countries have been able to translate their rapid economic growth into significantly less poverty and more opportunity. A timely new World Bank report—Securing Africa’s Land for Shared Prosperity: a Program to Scale Up Reforms and Investments—suggests that poor land governance, the system that determines and administers land rights, may lie at the root of this grievous problem. For example, the vast majority of African countries are using land administration systems they inherited at independence, along with survey and mapping techniques that are antiquated. Not surprisingly, only 10 percent of Africa’s rural land is registered. The remaining 90 percent is undocumented and informally administered, which makes it susceptible to land grabbing, expropriation without fair compensation, and corruption. Again these consequences fall hardest on women farmers who are often the only breadwinners in their families. Undocumented land is also a problem in Africa’s cities, now increasingly the destination for millions of former rural dwellers. The inhabitants of Africa’s booming cities need secure access to land to live legally without fear of eviction. This is where scaled-up land registration combined with legal recognition of the rights of squatters on public lands, would greatly improve the lives of poor families and their ability to tend communal gardens, improve urban agriculture, and run profitable businesses. Fortunately, there are successful examples worldwide of countries that have improved their land governance and revolutionized agriculture. For example, in 1978, China dismantled collective farms and used long-term leases to confer land rights on households, which launched an era of prolonged agricultural growth that transformed rural China and led to the largest reduction in poverty in history. In Argentina, Indonesia, and the Philippines, legal recognition of land rights for residents in slum areas have improved the quality of their housing and the value of their plots. Based on such worldwide experience and encouraging evidence from country pilots in African countries such as Ghana, Malawi, Mozambique, Tanzania, and Uganda, this new report suggests a series of ten steps that may help to revolutionize agricultural production and eradicate poverty in Africa. These steps include improving tenure security over individual and communal lands, increasing land access and tenure for poor and vulnerable families, resolving land disputes, managing better public land, and increasing efficiency and transparency in land administration services. Although poor land governance is daunting, the problem is not insurmountable. The last decade has witnessed an increase in concerted efforts by African countries and development partners to undertake land policy reforms and to pilot innovative approaches to improve land governance. Many of these countries either have legislation in place or initiatives in progress to address communal land rights and gender equality, the basis for sound land administration. Surges in commodity prices and foreign direct investment have increased the potential return on investment in land administration. We must match the evidence in this report with the political will and leadership to transform African agriculture and Africa’s development prospects. The opportunity to resolve the continent’s long-running struggle with land ownership and productivity has never been better. The time for action is now. Makhtar Diop is the World Bank Group’s Vice President for Africa  ","master_date":"2013-07-22T10:56:00Z","master_date_srt":"2013-07-22T10:56:00Z","master_recent_date_srt":"2013-07-22T10:56:00Z","master_recent_date":"2013-07-22T10:56:00Z","masterregion_exact":"Africa","short_description":"\"The last decade has witnessed an increase in concerted efforts by African countries and development partners to undertake land policy reforms and to pilot innovative approaches to improve land governance.\" - Makhtar Diop","masterconttype_exact":"Opinion","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":" Few development challenges in Africa are as pressing and controversial as land ownership and its persistent gap between rich and poor communities. With a profound demographic shift in Africa from rural areas to the cities where half of all Africans will live by 2050, these gaps will become steadily more pronounced as governments and communities rise to the challenge of growing enough affordable nutritious food for all families to thrive on the continent. In some countries in the region, these gaps—allied as they are with high poverty rates and large-scale unemployment—have become sufficiently wide to undermine shared growth and social cohesion. Women are especially vulnerable. They make up 70 percent of Africa’s farmers and yet, for the most part, are locked out of land ownership by customary laws. Without a title to the land they farm, women are unable to raise the money needed to improve their small harvests or to raise living standards. This injurious legacy perpetuates poverty and blights the lives of women who are the backbone of Africa’s farming, present and future. Many countries around the world have grappled with the challenge of landlessness and inequality of land ownership. However, in Africa, which has 202 million hectares or half the world’s total holdings of useable uncultivated fertile land, it is accentuated by extremely low agricultural productivity—only 25 percent of potential. Despite this abundant land and mineral wealth, much of Africa remains poor and too few countries have been able to translate their rapid economic growth into significantly less poverty and more opportunity. A timely new World Bank report—Securing Africa’s Land for Shared Prosperity: a Program to Scale Up Reforms and Investments—suggests that poor land governance, the system that determines and administers land rights, may lie at the root of this grievous problem. For example, the vast majority of African countries are using land administration systems they inherited at independence, along with survey and mapping techniques that are antiquated. Not surprisingly, only 10 percent of Africa’s rural land is registered. The remaining 90 percent is undocumented and informally administered, which makes it susceptible to land grabbing, expropriation without fair compensation, and corruption. Again these consequences fall hardest on women farmers who are often the only breadwinners in their families. Undocumented land is also a problem in Africa’s cities, now increasingly the destination for millions of former rural dwellers. The inhabitants of Africa’s booming cities need secure access to land to live legally without fear of eviction. This is where scaled-up land registration combined with legal recognition of the rights of squatters on public lands, would greatly improve the lives of poor families and their ability to tend communal gardens, improve urban agriculture, and run profitable businesses. Fortunately, there are successful examples worldwide of countries that have improved their land governance and revolutionized agriculture. For example, in 1978, China dismantled collective farms and used long-term leases to confer land rights on households, which launched an era of prolonged agricultural growth that transformed rural China and led to the largest reduction in poverty in history. In Argentina, Indonesia, and the Philippines, legal recognition of land rights for residents in slum areas have improved the quality of their housing and the value of their plots. Based on such worldwide experience and encouraging evidence from country pilots in African countries such as Ghana, Malawi, Mozambique, Tanzania, and Uganda, this new report suggests a series of ten steps that may help to revolutionize agricultural production and eradicate poverty in Africa. These steps include improving tenure security over individual and communal lands, increasing land access and tenure for poor and vulnerable families, resolving land disputes, managing better public land, and increasing efficiency and transparency in land administration services. Although poor land governance is daunting, the problem is not insurmountable. The last decade has witnessed an increase in concerted efforts by African countries and development partners to undertake land policy reforms and to pilot innovative approaches to improve land governance. Many of these countries either have legislation in place or initiatives in progress to address communal land rights and gender equality, the basis for sound land administration. Surges in commodity prices and foreign direct investment have increased the potential return on investment in land administration. We must match the evidence in this report with the political will and leadership to transform African agriculture and Africa’s development prospects. The opportunity to resolve the continent’s long-running struggle with land ownership and productivity has never been better. The time for action is now. Makhtar Diop is the World Bank Group’s Vice President for Africa  ","date":"2013-07-22T10:56:00Z","contenttype":"Opinion"},"_a1c7b19c3a3c26e6171488679494b70547a1d134":{"id":"a1c7b19c3a3c26e6171488679494b70547a1d134","title":"Celebrating Africa’s Progress - Remarks by Mr. K.Y. Amoako, Founder and President of the African Center for Economic Transformation, at the Stanley Please Memorial Lecture","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2013/06/24/celebrating-africa-s-progress-remarks-by-mr-k-y-amoako-founder-and-president-of-the-african-center-for-economic-transformation-at-the-stanley-please-memorial-lecture","descr":"Celebrating Africa’s Progress - Remarks by Mr. K.Y. Amoako, Founder and President of the African Center for Economic Transformation, at the Stanley Please Memorial Lecture","keywd":"regions:Africa","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","cqpath":"/content/wb-home/en/news/speech/2013/06/24/celebrating-africa-s-progress-remarks-by-mr-k-y-amoako-founder-and-president-of-the-african-center-for-economic-transformation-at-the-stanley-please-memorial-lecture","regionname":"Africa","wcmsource":"cq5","content":" Welcome and introduction  Thank you, Makhtar, for your fine opening remarks and for generously agreeing to have the Africa Region sponsor today’s event.  I also want to thank the Committee for the Stanley Please Memorial Lecture, or as I prefer to call them, The Gang of Six—Jim Adams, Bob Liebenthal, Stephen O’Brien, Praful Patel, Richard Stern, and Martin Wolf—for taking the initiative to put this event together. The committee has worked hard to turn a good idea into reality. And to our good friend, Shivakumar, and the leadership of the 1818 Society, I want to express appreciation for enthusiastically endorsing and putting the prestige of the Society behind an event honoring a great icon of the Bank, Stanley Please. In welcoming you all, I want to acknowledge the presence of several members of the Please family including Brian and his wife, Moira, who have traveled from London to join us as we pay tribute to Stanley. Finally, a special welcome to Ambassador Amina Salum Ali, the highly-respected representative of the African Union in Washington, and Kwesi Botchwey, my friend and compatriot, and a friend to anyone who worked on Ghana during Kwesi’s days as finance minister. Amina and Kwesi will participate in the panel discussion that Martin Wolf will be moderating soon. Friends, colleagues, and guests, thank you all for joining us today. I’m honored to have the opportunity to participate. The Gang of Six cajoled me into making this keynote address, and while I thank them for the invitation, I am not sure what it says about their judgment. As I look around this atrium, I see a “who’s who” of development leaders and experts spanning many decades. I see so many wonderful people, some my mentors, many my friends. I see people I’ve worked alongside, admired, and looked up to for as long as I can remember. It’s privilege to be among you today. Being here, I’m reminded of when I joined the Bank in 1974. The Bank was much different in those days, in both its internal culture and external activities. Its ambitions were smaller, its focus was narrower, and its opportunities, at least to young African men and women, were very limited. But, over the decades since, an evolution in thinking took place—a dramatic evolution—and Stanley was a key link in the chain. He foresaw a different role, a much more aggressive and active role, for the Bank from moment he arrived in 1963. He believed the Bank’s economic strength could be used in poor and developing countries as a catalytic force for change, not simply an avenue for aid. He was ahead of his time in his belief that the Bank should act faster, respond in real time when needed, and work collaboratively, on the ground, with local people and institutions. So we’re here at this event in his name, for one reason that would certainly thrill him—to discuss development in all of its technical details—and another that would probably frustrate him—to give him a little credit. We’re here not to memorialize Stanley, but to celebrate these things he held most dear—his profession, his passion for good policy, his hope for economic equality and opportunity. So let’s celebrate Stanley and his enduring contributions to the Bank and to the field of global development, particularly as those contributions relate to reducing poverty in Africa, one of his great motivators. Since he began his career, the way the world thinks about aid and development has evolved, and we’ve seen the Bank’s relationship with Africa evolve as well, from paternalistic lender to productive partner. Let’s also celebrate the progress Africa has made in recent decades, a period of encouraging economic growth in countries once considered lost causes. Now, instead of having the same old discussions about what it will take for Africa to turn the corner, we’re able to discuss what it will take to remove the remaining bottlenecks to prosperity—which are significant, but no longer seem insurmountable. And finally, let’s celebrate the achievements of all those who devote their careers to improving development outcomes, in Africa or anywhere else—people like Stanley, and the countless others he helped influence and inspire to carry forward similar goals, across all walks of life. When considering my remarks today, I realized that the power of influence is an unavoidable theme. Sometimes, we may see the direct result of our actions almost immediately. But mostly, our influence takes time to play out, and we have to believe that the decisions we make, the courses we set, and the goals we pursue are eventually proven to do more good than harm. In this way, celebrating Stanley’s legacy, and his dogged devotion to getting policies right for long-term development success, seems like a perfectly appropriate platform for celebrating Africa’s progress, and looking ahead to its brighter future. Celebrating Stanley Please Let me begin by talking a bit more about Stanley. I certainly can speak from experience. I first met him in 1975, a year after I joined the Bank, when I applied to be the country economist for Sudan. I interviewed with both the senior economist, Lyle Hansen, and division chief, Anders Jeuen. It went well, and we hit it off immediately. They recommended me to the country programs director for Eastern Africa—Stanley Please. Guess what? Stanley Please and I did not hit it off. At least, he didn’t want to hire me. He had nothing against me personally. He just didn’t think I had what it would take to meet his high standards. But I didn’t take no for an answer, and that either impressed him or wore him down. For me, it was an early lesson in humility and perseverance. It helped that I had come through the Bank’s Young Professional program. Stanley was one of the strongest supporters of the YP program, which aimed to bring young economists, of diverse backgrounds and ethnicities, to the Bank. At a time when most Bank managers seemed unsure of this radical idea, Stanley enthusiastically took YPs under his wing, and he used his knowledge of the Bank to guide them. His division became a highly sought destination because of his reputation as a tough but determined mentor. I can’t lie; my time in Stanley’s department was a grueling entry into professional development, and he and I often butted heads. But he made me prove myself. Stanley demanded excellence of all those around him, a reflection of his own determination to make the Bank a better place. That determination was evident from the beginning. One of his early contributions was a paper based on his observation that governments rarely retained fiscal surpluses, undermining the popular idea that government savings could be used to finance development projects. This insight became known inside the Bank as the “Please Effect,” and it remains a significant contribution to the literature of fiscal economics. The paper was published despite strong objections from the IMF, because the research publicly questioned Bank and IMF practices—a risky proposition in the early 1960s. As Stanley wrote in his autobiography: “Some ten years or so later, and ever since, the main conclusions were adopted as a central feature of operations.” Stanley’s tenure closely mirrored the Bank’s evolution from an institution with a focus primarily on project financing to one where policy and policy analysis were leading considerations. He was driven by a fundamental belief that governments needed to be capable, so as to ensure economic growth and efficiency, and that they needed to be accountable, so as to work in the best interests of their populations, especially the underprivileged. At the same time, he believed that the Bank’s emphasis on project lending failed to address the systemic government problems in Africa, a key theme in his famous book of essays, “The Hobbled Giant.” As a result of his thinking, Stanley became one of the first and foremost champions of policy reform at the country level as a precondition to effective aid. He was a strong advocate for linking the Bank’s lending to broad policies rather than specific projects such as dams, roads, and telecoms. The underlying idea—that it was impossible to promote development through project lending if the overall policy and institutional environment was distorted—has been proven correct over time, a fact especially evident in sub-Saharan Africa. Stanley played a key role in the design of the Structural Adjustment Program, the overall framework for early policy-based lending. We know the program was poorly implemented and had many adverse effects, but it spawned vast improvements in macroeconomic policies, which became a critical building block for Africa’s resurgence. Stanley also believed in the potential of regional institutions and the benefits of a broader market. When the East African Community was on the verge of breaking up in the late 1970s many in the Bank were willing to let it go. Not Stanley. He pushed hard for the Bank to adopt a positive stance. He was unsuccessful but today his vision is alive and the new East African Community is larger and stronger than ever. I also recall that in 1981 as a member of the task force that prepared the controversial Bank report “ Accelerated Development in Sub-Saharan Africa: An Agenda for Action,” or the Berg report as it became known, Stanley encouraged me to co-author a paper with him in which we made the case that despite the seemingly differences in approaches between the Bank on the one hand and the Organization of African Unity (OAU) and the Economic Commission for Africa (ECA) on the other, all three institutions were pursuing the same objective: a developed and prosperous Africa. There was a major problem with that argument however.  The Berg report had come to be seen as the forerunner to structural adjustment lending and our conclusion was seen in many African circles as heresy. Judging by the strong partnerships that exist today between the Bank and the African Union and other regional organizations one has to admire Stanley’s foresight as well his audacity at the time. Stanley’s impact on effective development policy, and on the way the Bank approaches policy in Africa is one reason he stands apart. But he wasn’t alone, of course; far from it. And I’m sure he would be offended if we didn’t take a moment to acknowledge—and applaud—everyone whose hard work equally influenced the evolution. People like Edward “Kim” Jaycox, who spent more than 30 years here, a dozen of them in charge of operations in Africa. Kim knew that an emphasis on policy adjustment and reform was good, but ownership and capacity, which he called the “missing link in African development,” should not be ignored. So he pushed to change that. He also pushed for coherence in donor assistance programs. Under Kim, the two African regions for the first time merged into one, a notable move away from colonial-era divisions and toward unified goals for Africa. Or people like Callisto Madavo, who, after a brief twinning arrangement with Jean-Louise Sarbib, succeeded Kim as a vice president for the region and has the distinction of being the first African ever to hold that post at the Bank. When I started, it seemed like wishful thinking to have a VP for Africa who was actually African. Callisto broke new ground, and since then, all of the Bank’s regional vice presidents in Africa have been Africans. Our good friend Makhtar Diop carries that tradition forward, and we all wish him continuing success. Over the past several decades, in response to a rapidly shifting landscape, the Bank has continued to broaden its approach to Africa. Following criticism of structural adjustment, the Bank increasingly focused on challenges in the social sectors, such as health and education reforms. In the 1990s, Poverty Reduction Strategy Papers placed renewed emphasis on social expenditures and market institutions. In recent years, as the ownership agenda has taken root, a focus on strengthening governance and anticorruption measures has become integral to the Bank’s work. Stanley retired before many of these operational shifts went into effect, but he continued to research and advise from afar, so he still witnessed their positive impacts. He wrote that his career at the Bank was “tailor-made” for him because he believed the career objective of being an economist was to reduce poverty and deprivation in the world. He certainly did his part. Celebrating African Progress While Stanley’s influence at the Bank was far-reaching, his legacy, as I’ve described, is deepest in Africa. That’s why it’s fitting on this occasion to celebrate the significant progress in Africa, and to consider the equally significant challenges ahead, and how to tackle them. The progress we’ve seen… Many times over the years, I’ve likened the first four decades of Africa’s post-colonial development to the classic movie, “The Good, the Bad, and the Ugly.” The years after independence were good, with healthy economic and industrial growth and decent levels of investment and domestic savings. But the bad came after the good, and before long, the bad turned downright ugly. We all know the problems coming out of the 1970s, but after the continent’s nadir in the early 1980s, when per capita growth had bottomed out, we began to see a shift. Hope replaced despair. By the mid-1990s, we saw a number of factors emerge that helped jumpstart the turnaround, beginning with a commitment to better policy structures but also including democratically elected leaders, improved governance, stronger economic management, debt relief, and more effective donor partnerships. The list goes on. In recent years, hope for a turnaround has given way to expectations of something far greater—lasting change, bolstered by efforts to transform economies, not simply grow them. We’re now in a period of renewed optimism, bolstered by booming growth, but tempered by pragmatic realism. Africa has much more to offer, as long the right steps are taken. Still, the recent gains cannot be ignored. The size of the African economy has more than doubled since 2000, the beginning of a decade in which six of the world’s 10 fastest growing countries were African. In that time, several others were above or near the 7 percent threshold for economic takeoff, raising expectations for the future. According to IMF projections for the top 10 growing economies through 2015, seven are again in Africa. It seems that every month brings a new report about the surge in investor interest in Africa. According to one of the most recent, Ernst and Young’s third Africa Attractiveness Survey, 86 percent of global business leaders with an established presence on the continent believe that Africa’s appeal will keep growing. Those surveyed rank Africa as the second most attractive regional investment destination in the world, behind Asia. The continent’s global share of foreign direct investment increased from 3.2 percent in 2007 to 5.6 percent in 2012, despite the economic downturn that began in 2008. The flow of private capital now exceeds foreign aid. As Africa’s economic and social prospects have brightened, so has its defining narrative, shifting from a region wracked by war and poverty to one brimming with opportunity and potential, from the hopeless to a hopeful continent. This is all fantastic news, but even as we celebrate it, we can’t get lost in it. It’s clear that after years of missteps and false starts, Africa is on the right track. But it’s also clear that Africa’s challenges have not gone away. They still exist, in some cases triggered by the accelerated growth we’ve welcomed. The challenges ahead… Africa continues to face persistent, structural development hurdles. It continues to lag behind the rest of the world in most economic indicators. So, the overriding question about Africa’s outlook is how to build on the successes so far; how to consolidate the economic gains into something greater? The recent report of the High–Level Panel of Eminent Persons on the Post-2015 Development Agenda calls for a paradigm shift, a profound structural transformation to overcome obstacles to sustained prosperity. For our discussion today, I would like to mention the big transformative shifts that are, in my view, required for Africa to ensure that continuing growth is sustainable—economically, socially, and environmentally. First is the lack of economic diversification. In almost all countries, production is dominated by the primary sector, either in agriculture or in minerals. Manufacturing sectors that are internationally competitive barely exist. As a result, productivity remains low, wages remain stagnant, and a majority of economies remain dangerously vulnerable to external shocks and the whims of private capital. Second is rising inequality amid non-inclusive growth. Africa’s boom is creating disturbing income gaps that will undermine long-term efforts to reduce poverty. A report released earlier this month by JICA at the Fifth Tokyo Conference on African Development (TICAD V) in Yokohama echoed this theme, noting that not only has inequality been high, but it’s been increasing over time. During the 2000s, two-thirds of African countries had a Gini coefficient above 40, the threshold for high inequality. Third is rapid urbanization and its impact on physical and social infrastructure. Over the last two decades, Africa has experienced the highest urban growth in the developing world. In the long run, increased urbanization is good, because cities fuel innovation and foster social mobility. But cities must be livable. Cracks in the social infrastructure, exacerbated by the rising inequality I just mentioned, are already showing as slums and urban poverty proliferate.   Fourth is unemployment. Population and economies may be growing, but jobs are not. And that’s a severe problem, especially among African youth. Approximately 10–12 million young people enter the labor market annually, and nearly all of them, even the well-educated, struggle with joblessness or in jobs that are insecure and pay low wages. In addition, millions of Africans lack the skills required for productive sectors, leading to an inefficient and underused labor force. And fifth is Africa’s adverse climate. Countries must continually cope, adapt, and build resilience to the devastating impact of natural disasters and climate change. It’s encouraging that in Yokohama the UN and the World Bank jointly reiterated the importance of integrating these considerations into development policy and programs. These challenges are immense, but they’re not insurmountable. That we’re even concerned about a “next wave” of development problems speaks to how far we’ve come. That’s why Africa’s economic transformation, not just its growth, is so critical. Transformation won’t solve all of Africa’s most pressing problems, but it’s a necessary condition to start. For me, economic transformation is also a personal story. A few years ago, following my 10-year stint as the Executive Secretary of the UN Economic Commission for Africa in Addis Ababa, I founded the African Center for Economic Transformation, based in Accra, to help countries take that next step. At ACET, we assist governments in implementing the right policies and creating the right environment to spur sustainable development in the interest of long-term, structural transformation. This fall, we will launch our flagship publication, the African Transformation Report, with events in Johannesburg, Addis Ababa, London, and here at the World Bank on the margins of the Annual Meeting. The report provides data and analysis for policymakers and the private sector to spur economic transformation. It will also introduce the African Transformation Index to show how countries are transforming over time and where they stand against each other on measures of five attributes of transformation: diversification, export competitiveness, productivity, technology, and human well-being. Copies of a preview to the report are at the back of the room. They give a sense of the structure and contents of the full report. I urge those interested to pick one up. Transformation will have implications for leadership, as well. At a seminar in conjunction with the recently concluded African Development Bank meeting in Marrakech, a distinguished panel of political leaders, businessmen, and policymakers debated the type of leadership Africa needs if the continent is to attain structural transformation in the face of its major challenges. Their conclusion was that African leaders must combine technical competence, personal integrity, and a commitment to the well-being of the African people above all else. A key test for Africa’s collective leadership is demonstrating the political will to accelerate economic integration and join the ranks of emerging economies by adding value to natural resources and increasing trade among African countries. That has been the goal since the inception of the Organization for African Unity in 1963, and it will be at the core of the African Union’s Vision 2063, to be set next January. I am sure Amina will have a lot to say on this in the panel discussion to follow shortly. We should also expect this leadership to propel a transformative shift in Africa’s relations with its development partners and its place in the international economy. Profound changes are altering the global finance system. Investment flows, trade patterns, and the aid architecture are evolving, while the value of South-South cooperation and the influence of the BRICS are rising. These changes demand adroitness on the part of African governments to maximize the quality and quantity of external resources for their continent’s transformation. In particular, the World Bank’s relations with Africa should continue to evolve, drawing on the institution’s past successes and failures, cognizant of the growing confidence and dynamism among the African people and their governments, and aware of the considerable vulnerabilities that still plague the continent. Let me conclude this discussion of a vision for Africa’s future with two queries: If economic transformation is truly realized, where will Africa be in another 25 years? What kind of life will the next generation have? These are the questions many of us are working to answer right now. And they are questions that I think Stanley would be… pleased … that we’re asking. Conclusion Stanley most likely would scoff at an event like this in his name, but he would surely welcome the discussion. I think he would be proud to see the broad extent of his influence on future generations. And that’s the final thing we should celebrate before concluding here today—Stanley’s continuing legacy, not just as an economist or researcher but as a leader, and as a friend. He personified the dedication and the passion for development that we should all hope to have. And he did it with an unfailing sense of humanity. He certainly influenced the course of my career and life, and though I’ve been the one up here talking, I’m also just one of many, a single representative of the people Stanley inspired or motivated. I’ve shared my thoughts; so I felt it would be fitting to hear from a few others, including some of those who helped organize this tribute. Martin Wolf, who’s chairing our upcoming panel, was a Stanley protégé when he joined the Bank in 1971. After a few years, he moved on to journalism, and he’s now a celebrated economics commentator at the Financial Times. Martin told me that Stanley made an “unforgettable impression” on him, due to an “extraordinarily rare” set of characteristics. His enthusiasm. His willingness to welcome subordinates whom he believed to be brighter and better trained than he was. His modesty about his own intellect. “Initially,” Martin said, “Stanley regarded my decision to become a journalist as surprising and rather disappointing, perhaps even frivolous. I hope he changed his mind later on, because Stanley always stood for important ideas about the world. And he strengthened my view that getting ideas right mattered.” Like Martin, Shankar Acharya also joined the Bank in 1971, and he too became one of Stanley’s protégés. Eventually, he returned to his native India, where he took on a prominent role as the chief economic adviser to the Indian government during the 1990s, a period of impressive economic growth for the country. “Stanley Please was the best boss I ever had,” Shankar said. “His warmth, humor, and camaraderie, and his devotion to high standards, set him apart as leader and as a mentor. Over time, my mentor morphed into my good friend. His hearty laugh echoes in my mind.” Not all of Stanley’s protégés dispersed around the world, of course. Jim Adams, a YP contemporary and good buddy of mine, first cut his teeth on Stanley’s team, and he stayed on at the Bank. In fact, he stayed … and stayed … and stayed! Jim recently retired after almost 40 years. He became a vice president for central operational policy and later vice president for East Asia. Since he retired from the Bank, Jim has been going around calling himself Tanzania Jim. Why? Sure he loves the safari. But the real reason is that the many years he spent working on Africa were the most fulfilling of his outstanding career at the Bank. In Jim’s words, “Stanley was a determined optimist about the Bank. I remember so clearly his view that if you as an individual felt something was important, you could get it done. This view was central to so many things I tried to do in the Bank. It is a key message to all Bank staff.” We now know the secret to Jim’s success! This month marks 50 years since Stanley joined the Bank, and we could talk at endless length about the policies, processes, and people that he influenced, but his greatest influence no doubt lives on with his family. He wrote that his autobiography, “The Making of a Meritocrat,” was intended not for a general audience but for members of subsequent generations of the family who he hoped may be interested “in the life of at least one of their ancestors.” It’s an honor to have Brian and Moira and other members of the family with us today. We are proud to recognize your great ancestor and to celebrate his achievements. Stanley retired as a fulltime Bank employee in September 1983, though he continued to consult, advise, and publish research for decades. But he fretted that one of the many “distressing aspects” of retiring from the Bank was that colleagues ask you to look backward, to reflect on what has changed and what lessons can be drawn over time. “My instincts,” he wrote, “are always to look forward at emerging problems and challenges. But history is sometimes useful provided it does not become too antiquarian or nostalgic.” In any case, he added, “colleagues persist.” Yes, Stanley, we do persist. And so do you, in much of what we do. Thank you.  ","content_1000":" Welcome and introduction  Thank you, Makhtar, for your fine opening remarks and for generously agreeing to have the Africa Region sponsor today’s event.  I also want to thank the Committee for the Stanley Please Memorial Lecture, or as I prefer to call them, The Gang of Six—Jim Adams, Bob Liebenthal, Stephen O’Brien, Praful Patel, Richard Stern, and Martin Wolf—for taking the initiative to put this event together. The committee has worked hard to turn a good idea into reality. And to our good friend, Shivakumar, and the leadership of the 1818 Society, I want to express appreciation for enthusiastically endorsing and putting the prestige of the Society behind an event honoring a great icon of the Bank, Stanley Please. In welcoming you all, I want to acknowledge the presence of several members of the Please family including Brian and his wife, Moira, who have traveled from London to join us as we pay tribute to Stanley. Finally, a special welcome to Ambassador Amina Salum Ali, the ","displayconttype":"Speeches and Transcripts","originating_unit":"EXTCC","originating_unit_exact":"EXTCC","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Speeches and Transcripts","node_id":"a1c7b19c3a3c26e6171488679494b70547a1d134","wn_title":"Celebrating Africa’s Progress - Remarks by Mr. K.Y. Amoako, Founder and President of the African Center for Economic Transformation, at the Stanley Please Memorial Lecture","wn_desc":" Welcome and introduction  Thank you, Makhtar, for your fine opening remarks and for generously agreeing to have the Africa Region sponsor today’s event.  I also want to thank the Committee for the Stanley Please Memorial Lecture, or as I prefer to call them, The Gang of Six—Jim Adams, Bob Liebenthal, Stephen O’Brien, Praful Patel, Richard Stern, and Martin Wolf—for taking the initiative to put this event together. The committee has worked hard to turn a good idea into reality. And to our good friend, Shivakumar, and the leadership of the 1818 Society, I want to express appreciation for enthusiastically endorsing and putting the prestige of the Society behind an event honoring a great icon of the Bank, Stanley Please. In welcoming you all, I want to acknowledge the presence of several members of the Please family including Brian and his wife, Moira, who have traveled from London to join us as we pay tribute to Stanley. Finally, a special welcome to Ambassador Amina Salum Ali, the highly-respected representative of the African Union in Washington, and Kwesi Botchwey, my friend and compatriot, and a friend to anyone who worked on Ghana during Kwesi’s days as finance minister. Amina and Kwesi will participate in the panel discussion that Martin Wolf will be moderating soon. Friends, colleagues, and guests, thank you all for joining us today. I’m honored to have the opportunity to participate. The Gang of Six cajoled me into making this keynote address, and while I thank them for the invitation, I am not sure what it says about their judgment. As I look around this atrium, I see a “who’s who” of development leaders and experts spanning many decades. I see so many wonderful people, some my mentors, many my friends. I see people I’ve worked alongside, admired, and looked up to for as long as I can remember. It’s privilege to be among you today. Being here, I’m reminded of when I joined the Bank in 1974. The Bank was much different in those days, in both its internal culture and external activities. Its ambitions were smaller, its focus was narrower, and its opportunities, at least to young African men and women, were very limited. But, over the decades since, an evolution in thinking took place—a dramatic evolution—and Stanley was a key link in the chain. He foresaw a different role, a much more aggressive and active role, for the Bank from moment he arrived in 1963. He believed the Bank’s economic strength could be used in poor and developing countries as a catalytic force for change, not simply an avenue for aid. He was ahead of his time in his belief that the Bank should act faster, respond in real time when needed, and work collaboratively, on the ground, with local people and institutions. So we’re here at this event in his name, for one reason that would certainly thrill him—to discuss development in all of its technical details—and another that would probably frustrate him—to give him a little credit. We’re here not to memorialize Stanley, but to celebrate these things he held most dear—his profession, his passion for good policy, his hope for economic equality and opportunity. So let’s celebrate Stanley and his enduring contributions to the Bank and to the field of global development, particularly as those contributions relate to reducing poverty in Africa, one of his great motivators. Since he began his career, the way the world thinks about aid and development has evolved, and we’ve seen the Bank’s relationship with Africa evolve as well, from paternalistic lender to productive partner. Let’s also celebrate the progress Africa has made in recent decades, a period of encouraging economic growth in countries once considered lost causes. Now, instead of having the same old discussions about what it will take for Africa to turn the corner, we’re able to discuss what it will take to remove the remaining bottlenecks to prosperity—which are significant, but no longer seem insurmountable. And finally, let’s celebrate the achievements of all those who devote their careers to improving development outcomes, in Africa or anywhere else—people like Stanley, and the countless others he helped influence and inspire to carry forward similar goals, across all walks of life. When considering my remarks today, I realized that the power of influence is an unavoidable theme. Sometimes, we may see the direct result of our actions almost immediately. But mostly, our influence takes time to play out, and we have to believe that the decisions we make, the courses we set, and the goals we pursue are eventually proven to do more good than harm. In this way, celebrating Stanley’s legacy, and his dogged devotion to getting policies right for long-term development success, seems like a perfectly appropriate platform for celebrating Africa’s progress, and looking ahead to its brighter future. Celebrating Stanley Please Let me begin by talking a bit more about Stanley. I certainly can speak from experience. I first met him in 1975, a year after I joined the Bank, when I applied to be the country economist for Sudan. I interviewed with both the senior economist, Lyle Hansen, and division chief, Anders Jeuen. It went well, and we hit it off immediately. They recommended me to the country programs director for Eastern Africa—Stanley Please. Guess what? Stanley Please and I did not hit it off. At least, he didn’t want to hire me. He had nothing against me personally. He just didn’t think I had what it would take to meet his high standards. But I didn’t take no for an answer, and that either impressed him or wore him down. For me, it was an early lesson in humility and perseverance. It helped that I had come through the Bank’s Young Professional program. Stanley was one of the strongest supporters of the YP program, which aimed to bring young economists, of diverse backgrounds and ethnicities, to the Bank. At a time when most Bank managers seemed unsure of this radical idea, Stanley enthusiastically took YPs under his wing, and he used his knowledge of the Bank to guide them. His division became a highly sought destination because of his reputation as a tough but determined mentor. I can’t lie; my time in Stanley’s department was a grueling entry into professional development, and he and I often butted heads. But he made me prove myself. Stanley demanded excellence of all those around him, a reflection of his own determination to make the Bank a better place. That determination was evident from the beginning. One of his early contributions was a paper based on his observation that governments rarely retained fiscal surpluses, undermining the popular idea that government savings could be used to finance development projects. This insight became known inside the Bank as the “Please Effect,” and it remains a significant contribution to the literature of fiscal economics. The paper was published despite strong objections from the IMF, because the research publicly questioned Bank and IMF practices—a risky proposition in the early 1960s. As Stanley wrote in his autobiography: “Some ten years or so later, and ever since, the main conclusions were adopted as a central feature of operations.” Stanley’s tenure closely mirrored the Bank’s evolution from an institution with a focus primarily on project financing to one where policy and policy analysis were leading considerations. He was driven by a fundamental belief that governments needed to be capable, so as to ensure economic growth and efficiency, and that they needed to be accountable, so as to work in the best interests of their populations, especially the underprivileged. At the same time, he believed that the Bank’s emphasis on project lending failed to address the systemic government problems in Africa, a key theme in his famous book of essays, “The Hobbled Giant.” As a result of his thinking, Stanley became one of the first and foremost champions of policy reform at the country level as a precondition to effective aid. He was a strong advocate for linking the Bank’s lending to broad policies rather than specific projects such as dams, roads, and telecoms. The underlying idea—that it was impossible to promote development through project lending if the overall policy and institutional environment was distorted—has been proven correct over time, a fact especially evident in sub-Saharan Africa. Stanley played a key role in the design of the Structural Adjustment Program, the overall framework for early policy-based lending. We know the program was poorly implemented and had many adverse effects, but it spawned vast improvements in macroeconomic policies, which became a critical building block for Africa’s resurgence. Stanley also believed in the potential of regional institutions and the benefits of a broader market. When the East African Community was on the verge of breaking up in the late 1970s many in the Bank were willing to let it go. Not Stanley. He pushed hard for the Bank to adopt a positive stance. He was unsuccessful but today his vision is alive and the new East African Community is larger and stronger than ever. I also recall that in 1981 as a member of the task force that prepared the controversial Bank report “ Accelerated Development in Sub-Saharan Africa: An Agenda for Action,” or the Berg report as it became known, Stanley encouraged me to co-author a paper with him in which we made the case that despite the seemingly differences in approaches between the Bank on the one hand and the Organization of African Unity (OAU) and the Economic Commission for Africa (ECA) on the other, all three institutions were pursuing the same objective: a developed and prosperous Africa. There was a major problem with that argument however.  The Berg report had come to be seen as the forerunner to structural adjustment lending and our conclusion was seen in many African circles as heresy. Judging by the strong partnerships that exist today between the Bank and the African Union and other regional organizations one has to admire Stanley’s foresight as well his audacity at the time. Stanley’s impact on effective development policy, and on the way the Bank approaches policy in Africa is one reason he stands apart. But he wasn’t alone, of course; far from it. And I’m sure he would be offended if we didn’t take a moment to acknowledge—and applaud—everyone whose hard work equally influenced the evolution. People like Edward “Kim” Jaycox, who spent more than 30 years here, a dozen of them in charge of operations in Africa. Kim knew that an emphasis on policy adjustment and reform was good, but ownership and capacity, which he called the “missing link in African development,” should not be ignored. So he pushed to change that. He also pushed for coherence in donor assistance programs. Under Kim, the two African regions for the first time merged into one, a notable move away from colonial-era divisions and toward unified goals for Africa. Or people like Callisto Madavo, who, after a brief twinning arrangement with Jean-Louise Sarbib, succeeded Kim as a vice president for the region and has the distinction of being the first African ever to hold that post at the Bank. When I started, it seemed like wishful thinking to have a VP for Africa who was actually African. Callisto broke new ground, and since then, all of the Bank’s regional vice presidents in Africa have been Africans. Our good friend Makhtar Diop carries that tradition forward, and we all wish him continuing success. Over the past several decades, in response to a rapidly shifting landscape, the Bank has continued to broaden its approach to Africa. Following criticism of structural adjustment, the Bank increasingly focused on challenges in the social sectors, such as health and education reforms. In the 1990s, Poverty Reduction Strategy Papers placed renewed emphasis on social expenditures and market institutions. In recent years, as the ownership agenda has taken root, a focus on strengthening governance and anticorruption measures has become integral to the Bank’s work. Stanley retired before many of these operational shifts went into effect, but he continued to research and advise from afar, so he still witnessed their positive impacts. He wrote that his career at the Bank was “tailor-made” for him because he believed the career objective of being an economist was to reduce poverty and deprivation in the world. He certainly did his part. Celebrating African Progress While Stanley’s influence at the Bank was far-reaching, his legacy, as I’ve described, is deepest in Africa. That’s why it’s fitting on this occasion to celebrate the significant progress in Africa, and to consider the equally significant challenges ahead, and how to tackle them. The progress we’ve seen… Many times over the years, I’ve likened the first four decades of Africa’s post-colonial development to the classic movie, “The Good, the Bad, and the Ugly.” The years after independence were good, with healthy economic and industrial growth and decent levels of investment and domestic savings. But the bad came after the good, and before long, the bad turned downright ugly. We all know the problems coming out of the 1970s, but after the continent’s nadir in the early 1980s, when per capita growth had bottomed out, we began to see a shift. Hope replaced despair. By the mid-1990s, we saw a number of factors emerge that helped jumpstart the turnaround, beginning with a commitment to better policy structures but also including democratically elected leaders, improved governance, stronger economic management, debt relief, and more effective donor partnerships. The list goes on. In recent years, hope for a turnaround has given way to expectations of something far greater—lasting change, bolstered by efforts to transform economies, not simply grow them. We’re now in a period of renewed optimism, bolstered by booming growth, but tempered by pragmatic realism. Africa has much more to offer, as long the right steps are taken. Still, the recent gains cannot be ignored. The size of the African economy has more than doubled since 2000, the beginning of a decade in which six of the world’s 10 fastest growing countries were African. In that time, several others were above or near the 7 percent threshold for economic takeoff, raising expectations for the future. According to IMF projections for the top 10 growing economies through 2015, seven are again in Africa. It seems that every month brings a new report about the surge in investor interest in Africa. According to one of the most recent, Ernst and Young’s third Africa Attractiveness Survey, 86 percent of global business leaders with an established presence on the continent believe that Africa’s appeal will keep growing. Those surveyed rank Africa as the second most attractive regional investment destination in the world, behind Asia. The continent’s global share of foreign direct investment increased from 3.2 percent in 2007 to 5.6 percent in 2012, despite the economic downturn that began in 2008. The flow of private capital now exceeds foreign aid. As Africa’s economic and social prospects have brightened, so has its defining narrative, shifting from a region wracked by war and poverty to one brimming with opportunity and potential, from the hopeless to a hopeful continent. This is all fantastic news, but even as we celebrate it, we can’t get lost in it. It’s clear that after years of missteps and false starts, Africa is on the right track. But it’s also clear that Africa’s challenges have not gone away. They still exist, in some cases triggered by the accelerated growth we’ve welcomed. The challenges ahead… Africa continues to face persistent, structural development hurdles. It continues to lag behind the rest of the world in most economic indicators. So, the overriding question about Africa’s outlook is how to build on the successes so far; how to consolidate the economic gains into something greater? The recent report of the High–Level Panel of Eminent Persons on the Post-2015 Development Agenda calls for a paradigm shift, a profound structural transformation to overcome obstacles to sustained prosperity. For our discussion today, I would like to mention the big transformative shifts that are, in my view, required for Africa to ensure that continuing growth is sustainable—economically, socially, and environmentally. First is the lack of economic diversification. In almost all countries, production is dominated by the primary sector, either in agriculture or in minerals. Manufacturing sectors that are internationally competitive barely exist. As a result, productivity remains low, wages remain stagnant, and a majority of economies remain dangerously vulnerable to external shocks and the whims of private capital. Second is rising inequality amid non-inclusive growth. Africa’s boom is creating disturbing income gaps that will undermine long-term efforts to reduce poverty. A report released earlier this month by JICA at the Fifth Tokyo Conference on African Development (TICAD V) in Yokohama echoed this theme, noting that not only has inequality been high, but it’s been increasing over time. During the 2000s, two-thirds of African countries had a Gini coefficient above 40, the threshold for high inequality. Third is rapid urbanization and its impact on physical and social infrastructure. Over the last two decades, Africa has experienced the highest urban growth in the developing world. In the long run, increased urbanization is good, because cities fuel innovation and foster social mobility. But cities must be livable. Cracks in the social infrastructure, exacerbated by the rising inequality I just mentioned, are already showing as slums and urban poverty proliferate.   Fourth is unemployment. Population and economies may be growing, but jobs are not. And that’s a severe problem, especially among African youth. Approximately 10–12 million young people enter the labor market annually, and nearly all of them, even the well-educated, struggle with joblessness or in jobs that are insecure and pay low wages. In addition, millions of Africans lack the skills required for productive sectors, leading to an inefficient and underused labor force. And fifth is Africa’s adverse climate. Countries must continually cope, adapt, and build resilience to the devastating impact of natural disasters and climate change. It’s encouraging that in Yokohama the UN and the World Bank jointly reiterated the importance of integrating these considerations into development policy and programs. These challenges are immense, but they’re not insurmountable. That we’re even concerned about a “next wave” of development problems speaks to how far we’ve come. That’s why Africa’s economic transformation, not just its growth, is so critical. Transformation won’t solve all of Africa’s most pressing problems, but it’s a necessary condition to start. For me, economic transformation is also a personal story. A few years ago, following my 10-year stint as the Executive Secretary of the UN Economic Commission for Africa in Addis Ababa, I founded the African Center for Economic Transformation, based in Accra, to help countries take that next step. At ACET, we assist governments in implementing the right policies and creating the right environment to spur sustainable development in the interest of long-term, structural transformation. This fall, we will launch our flagship publication, the African Transformation Report, with events in Johannesburg, Addis Ababa, London, and here at the World Bank on the margins of the Annual Meeting. The report provides data and analysis for policymakers and the private sector to spur economic transformation. It will also introduce the African Transformation Index to show how countries are transforming over time and where they stand against each other on measures of five attributes of transformation: diversification, export competitiveness, productivity, technology, and human well-being. Copies of a preview to the report are at the back of the room. They give a sense of the structure and contents of the full report. I urge those interested to pick one up. Transformation will have implications for leadership, as well. At a seminar in conjunction with the recently concluded African Development Bank meeting in Marrakech, a distinguished panel of political leaders, businessmen, and policymakers debated the type of leadership Africa needs if the continent is to attain structural transformation in the face of its major challenges. Their conclusion was that African leaders must combine technical competence, personal integrity, and a commitment to the well-being of the African people above all else. A key test for Africa’s collective leadership is demonstrating the political will to accelerate economic integration and join the ranks of emerging economies by adding value to natural resources and increasing trade among African countries. That has been the goal since the inception of the Organization for African Unity in 1963, and it will be at the core of the African Union’s Vision 2063, to be set next January. I am sure Amina will have a lot to say on this in the panel discussion to follow shortly. We should also expect this leadership to propel a transformative shift in Africa’s relations with its development partners and its place in the international economy. Profound changes are altering the global finance system. Investment flows, trade patterns, and the aid architecture are evolving, while the value of South-South cooperation and the influence of the BRICS are rising. These changes demand adroitness on the part of African governments to maximize the quality and quantity of external resources for their continent’s transformation. In particular, the World Bank’s relations with Africa should continue to evolve, drawing on the institution’s past successes and failures, cognizant of the growing confidence and dynamism among the African people and their governments, and aware of the considerable vulnerabilities that still plague the continent. Let me conclude this discussion of a vision for Africa’s future with two queries: If economic transformation is truly realized, where will Africa be in another 25 years? What kind of life will the next generation have? These are the questions many of us are working to answer right now. And they are questions that I think Stanley would be… pleased … that we’re asking. Conclusion Stanley most likely would scoff at an event like this in his name, but he would surely welcome the discussion. I think he would be proud to see the broad extent of his influence on future generations. And that’s the final thing we should celebrate before concluding here today—Stanley’s continuing legacy, not just as an economist or researcher but as a leader, and as a friend. He personified the dedication and the passion for development that we should all hope to have. And he did it with an unfailing sense of humanity. He certainly influenced the course of my career and life, and though I’ve been the one up here talking, I’m also just one of many, a single representative of the people Stanley inspired or motivated. I’ve shared my thoughts; so I felt it would be fitting to hear from a few others, including some of those who helped organize this tribute. Martin Wolf, who’s chairing our upcoming panel, was a Stanley protégé when he joined the Bank in 1971. After a few years, he moved on to journalism, and he’s now a celebrated economics commentator at the Financial Times. Martin told me that Stanley made an “unforgettable impression” on him, due to an “extraordinarily rare” set of characteristics. His enthusiasm. His willingness to welcome subordinates whom he believed to be brighter and better trained than he was. His modesty about his own intellect. “Initially,” Martin said, “Stanley regarded my decision to become a journalist as surprising and rather disappointing, perhaps even frivolous. I hope he changed his mind later on, because Stanley always stood for important ideas about the world. And he strengthened my view that getting ideas right mattered.” Like Martin, Shankar Acharya also joined the Bank in 1971, and he too became one of Stanley’s protégés. Eventually, he returned to his native India, where he took on a prominent role as the chief economic adviser to the Indian government during the 1990s, a period of impressive economic growth for the country. “Stanley Please was the best boss I ever had,” Shankar said. “His warmth, humor, and camaraderie, and his devotion to high standards, set him apart as leader and as a mentor. Over time, my mentor morphed into my good friend. His hearty laugh echoes in my mind.” Not all of Stanley’s protégés dispersed around the world, of course. Jim Adams, a YP contemporary and good buddy of mine, first cut his teeth on Stanley’s team, and he stayed on at the Bank. In fact, he stayed … and stayed … and stayed! Jim recently retired after almost 40 years. He became a vice president for central operational policy and later vice president for East Asia. Since he retired from the Bank, Jim has been going around calling himself Tanzania Jim. Why? Sure he loves the safari. But the real reason is that the many years he spent working on Africa were the most fulfilling of his outstanding career at the Bank. In Jim’s words, “Stanley was a determined optimist about the Bank. I remember so clearly his view that if you as an individual felt something was important, you could get it done. This view was central to so many things I tried to do in the Bank. It is a key message to all Bank staff.” We now know the secret to Jim’s success! This month marks 50 years since Stanley joined the Bank, and we could talk at endless length about the policies, processes, and people that he influenced, but his greatest influence no doubt lives on with his family. He wrote that his autobiography, “The Making of a Meritocrat,” was intended not for a general audience but for members of subsequent generations of the family who he hoped may be interested “in the life of at least one of their ancestors.” It’s an honor to have Brian and Moira and other members of the family with us today. We are proud to recognize your great ancestor and to celebrate his achievements. Stanley retired as a fulltime Bank employee in September 1983, though he continued to consult, advise, and publish research for decades. But he fretted that one of the many “distressing aspects” of retiring from the Bank was that colleagues ask you to look backward, to reflect on what has changed and what lessons can be drawn over time. “My instincts,” he wrote, “are always to look forward at emerging problems and challenges. But history is sometimes useful provided it does not become too antiquarian or nostalgic.” In any case, he added, “colleagues persist.” Yes, Stanley, we do persist. And so do you, in much of what we do. Thank you.  ","master_date":"2013-06-24T13:50:00Z","master_date_srt":"2013-06-24T13:50:00Z","master_recent_date_srt":"2013-06-24T13:50:00Z","master_recent_date":"2013-06-24T13:50:00Z","masterregion_exact":"Africa","short_description":"Celebrating Africa’s Progress - Remarks by Mr. K.Y. Amoako, Founder and President of the African Center for Economic Transformation, at the Stanley Please Memorial Lecture","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":" Welcome and introduction  Thank you, Makhtar, for your fine opening remarks and for generously agreeing to have the Africa Region sponsor today’s event.  I also want to thank the Committee for the Stanley Please Memorial Lecture, or as I prefer to call them, The Gang of Six—Jim Adams, Bob Liebenthal, Stephen O’Brien, Praful Patel, Richard Stern, and Martin Wolf—for taking the initiative to put this event together. The committee has worked hard to turn a good idea into reality. And to our good friend, Shivakumar, and the leadership of the 1818 Society, I want to express appreciation for enthusiastically endorsing and putting the prestige of the Society behind an event honoring a great icon of the Bank, Stanley Please. In welcoming you all, I want to acknowledge the presence of several members of the Please family including Brian and his wife, Moira, who have traveled from London to join us as we pay tribute to Stanley. Finally, a special welcome to Ambassador Amina Salum Ali, the highly-respected representative of the African Union in Washington, and Kwesi Botchwey, my friend and compatriot, and a friend to anyone who worked on Ghana during Kwesi’s days as finance minister. Amina and Kwesi will participate in the panel discussion that Martin Wolf will be moderating soon. Friends, colleagues, and guests, thank you all for joining us today. I’m honored to have the opportunity to participate. The Gang of Six cajoled me into making this keynote address, and while I thank them for the invitation, I am not sure what it says about their judgment. As I look around this atrium, I see a “who’s who” of development leaders and experts spanning many decades. I see so many wonderful people, some my mentors, many my friends. I see people I’ve worked alongside, admired, and looked up to for as long as I can remember. It’s privilege to be among you today. Being here, I’m reminded of when I joined the Bank in 1974. The Bank was much different in those days, in both its internal culture and external activities. Its ambitions were smaller, its focus was narrower, and its opportunities, at least to young African men and women, were very limited. But, over the decades since, an evolution in thinking took place—a dramatic evolution—and Stanley was a key link in the chain. He foresaw a different role, a much more aggressive and active role, for the Bank from moment he arrived in 1963. He believed the Bank’s economic strength could be used in poor and developing countries as a catalytic force for change, not simply an avenue for aid. He was ahead of his time in his belief that the Bank should act faster, respond in real time when needed, and work collaboratively, on the ground, with local people and institutions. So we’re here at this event in his name, for one reason that would certainly thrill him—to discuss development in all of its technical details—and another that would probably frustrate him—to give him a little credit. We’re here not to memorialize Stanley, but to celebrate these things he held most dear—his profession, his passion for good policy, his hope for economic equality and opportunity. So let’s celebrate Stanley and his enduring contributions to the Bank and to the field of global development, particularly as those contributions relate to reducing poverty in Africa, one of his great motivators. Since he began his career, the way the world thinks about aid and development has evolved, and we’ve seen the Bank’s relationship with Africa evolve as well, from paternalistic lender to productive partner. Let’s also celebrate the progress Africa has made in recent decades, a period of encouraging economic growth in countries once considered lost causes. Now, instead of having the same old discussions about what it will take for Africa to turn the corner, we’re able to discuss what it will take to remove the remaining bottlenecks to prosperity—which are significant, but no longer seem insurmountable. And finally, let’s celebrate the achievements of all those who devote their careers to improving development outcomes, in Africa or anywhere else—people like Stanley, and the countless others he helped influence and inspire to carry forward similar goals, across all walks of life. When considering my remarks today, I realized that the power of influence is an unavoidable theme. Sometimes, we may see the direct result of our actions almost immediately. But mostly, our influence takes time to play out, and we have to believe that the decisions we make, the courses we set, and the goals we pursue are eventually proven to do more good than harm. In this way, celebrating Stanley’s legacy, and his dogged devotion to getting policies right for long-term development success, seems like a perfectly appropriate platform for celebrating Africa’s progress, and looking ahead to its brighter future. Celebrating Stanley Please Let me begin by talking a bit more about Stanley. I certainly can speak from experience. I first met him in 1975, a year after I joined the Bank, when I applied to be the country economist for Sudan. I interviewed with both the senior economist, Lyle Hansen, and division chief, Anders Jeuen. It went well, and we hit it off immediately. They recommended me to the country programs director for Eastern Africa—Stanley Please. Guess what? Stanley Please and I did not hit it off. At least, he didn’t want to hire me. He had nothing against me personally. He just didn’t think I had what it would take to meet his high standards. But I didn’t take no for an answer, and that either impressed him or wore him down. For me, it was an early lesson in humility and perseverance. It helped that I had come through the Bank’s Young Professional program. Stanley was one of the strongest supporters of the YP program, which aimed to bring young economists, of diverse backgrounds and ethnicities, to the Bank. At a time when most Bank managers seemed unsure of this radical idea, Stanley enthusiastically took YPs under his wing, and he used his knowledge of the Bank to guide them. His division became a highly sought destination because of his reputation as a tough but determined mentor. I can’t lie; my time in Stanley’s department was a grueling entry into professional development, and he and I often butted heads. But he made me prove myself. Stanley demanded excellence of all those around him, a reflection of his own determination to make the Bank a better place. That determination was evident from the beginning. One of his early contributions was a paper based on his observation that governments rarely retained fiscal surpluses, undermining the popular idea that government savings could be used to finance development projects. This insight became known inside the Bank as the “Please Effect,” and it remains a significant contribution to the literature of fiscal economics. The paper was published despite strong objections from the IMF, because the research publicly questioned Bank and IMF practices—a risky proposition in the early 1960s. As Stanley wrote in his autobiography: “Some ten years or so later, and ever since, the main conclusions were adopted as a central feature of operations.” Stanley’s tenure closely mirrored the Bank’s evolution from an institution with a focus primarily on project financing to one where policy and policy analysis were leading considerations. He was driven by a fundamental belief that governments needed to be capable, so as to ensure economic growth and efficiency, and that they needed to be accountable, so as to work in the best interests of their populations, especially the underprivileged. At the same time, he believed that the Bank’s emphasis on project lending failed to address the systemic government problems in Africa, a key theme in his famous book of essays, “The Hobbled Giant.” As a result of his thinking, Stanley became one of the first and foremost champions of policy reform at the country level as a precondition to effective aid. He was a strong advocate for linking the Bank’s lending to broad policies rather than specific projects such as dams, roads, and telecoms. The underlying idea—that it was impossible to promote development through project lending if the overall policy and institutional environment was distorted—has been proven correct over time, a fact especially evident in sub-Saharan Africa. Stanley played a key role in the design of the Structural Adjustment Program, the overall framework for early policy-based lending. We know the program was poorly implemented and had many adverse effects, but it spawned vast improvements in macroeconomic policies, which became a critical building block for Africa’s resurgence. Stanley also believed in the potential of regional institutions and the benefits of a broader market. When the East African Community was on the verge of breaking up in the late 1970s many in the Bank were willing to let it go. Not Stanley. He pushed hard for the Bank to adopt a positive stance. He was unsuccessful but today his vision is alive and the new East African Community is larger and stronger than ever. I also recall that in 1981 as a member of the task force that prepared the controversial Bank report “ Accelerated Development in Sub-Saharan Africa: An Agenda for Action,” or the Berg report as it became known, Stanley encouraged me to co-author a paper with him in which we made the case that despite the seemingly differences in approaches between the Bank on the one hand and the Organization of African Unity (OAU) and the Economic Commission for Africa (ECA) on the other, all three institutions were pursuing the same objective: a developed and prosperous Africa. There was a major problem with that argument however.  The Berg report had come to be seen as the forerunner to structural adjustment lending and our conclusion was seen in many African circles as heresy. Judging by the strong partnerships that exist today between the Bank and the African Union and other regional organizations one has to admire Stanley’s foresight as well his audacity at the time. Stanley’s impact on effective development policy, and on the way the Bank approaches policy in Africa is one reason he stands apart. But he wasn’t alone, of course; far from it. And I’m sure he would be offended if we didn’t take a moment to acknowledge—and applaud—everyone whose hard work equally influenced the evolution. People like Edward “Kim” Jaycox, who spent more than 30 years here, a dozen of them in charge of operations in Africa. Kim knew that an emphasis on policy adjustment and reform was good, but ownership and capacity, which he called the “missing link in African development,” should not be ignored. So he pushed to change that. He also pushed for coherence in donor assistance programs. Under Kim, the two African regions for the first time merged into one, a notable move away from colonial-era divisions and toward unified goals for Africa. Or people like Callisto Madavo, who, after a brief twinning arrangement with Jean-Louise Sarbib, succeeded Kim as a vice president for the region and has the distinction of being the first African ever to hold that post at the Bank. When I started, it seemed like wishful thinking to have a VP for Africa who was actually African. Callisto broke new ground, and since then, all of the Bank’s regional vice presidents in Africa have been Africans. Our good friend Makhtar Diop carries that tradition forward, and we all wish him continuing success. Over the past several decades, in response to a rapidly shifting landscape, the Bank has continued to broaden its approach to Africa. Following criticism of structural adjustment, the Bank increasingly focused on challenges in the social sectors, such as health and education reforms. In the 1990s, Poverty Reduction Strategy Papers placed renewed emphasis on social expenditures and market institutions. In recent years, as the ownership agenda has taken root, a focus on strengthening governance and anticorruption measures has become integral to the Bank’s work. Stanley retired before many of these operational shifts went into effect, but he continued to research and advise from afar, so he still witnessed their positive impacts. He wrote that his career at the Bank was “tailor-made” for him because he believed the career objective of being an economist was to reduce poverty and deprivation in the world. He certainly did his part. Celebrating African Progress While Stanley’s influence at the Bank was far-reaching, his legacy, as I’ve described, is deepest in Africa. That’s why it’s fitting on this occasion to celebrate the significant progress in Africa, and to consider the equally significant challenges ahead, and how to tackle them. The progress we’ve seen… Many times over the years, I’ve likened the first four decades of Africa’s post-colonial development to the classic movie, “The Good, the Bad, and the Ugly.” The years after independence were good, with healthy economic and industrial growth and decent levels of investment and domestic savings. But the bad came after the good, and before long, the bad turned downright ugly. We all know the problems coming out of the 1970s, but after the continent’s nadir in the early 1980s, when per capita growth had bottomed out, we began to see a shift. Hope replaced despair. By the mid-1990s, we saw a number of factors emerge that helped jumpstart the turnaround, beginning with a commitment to better policy structures but also including democratically elected leaders, improved governance, stronger economic management, debt relief, and more effective donor partnerships. The list goes on. In recent years, hope for a turnaround has given way to expectations of something far greater—lasting change, bolstered by efforts to transform economies, not simply grow them. We’re now in a period of renewed optimism, bolstered by booming growth, but tempered by pragmatic realism. Africa has much more to offer, as long the right steps are taken. Still, the recent gains cannot be ignored. The size of the African economy has more than doubled since 2000, the beginning of a decade in which six of the world’s 10 fastest growing countries were African. In that time, several others were above or near the 7 percent threshold for economic takeoff, raising expectations for the future. According to IMF projections for the top 10 growing economies through 2015, seven are again in Africa. It seems that every month brings a new report about the surge in investor interest in Africa. According to one of the most recent, Ernst and Young’s third Africa Attractiveness Survey, 86 percent of global business leaders with an established presence on the continent believe that Africa’s appeal will keep growing. Those surveyed rank Africa as the second most attractive regional investment destination in the world, behind Asia. The continent’s global share of foreign direct investment increased from 3.2 percent in 2007 to 5.6 percent in 2012, despite the economic downturn that began in 2008. The flow of private capital now exceeds foreign aid. As Africa’s economic and social prospects have brightened, so has its defining narrative, shifting from a region wracked by war and poverty to one brimming with opportunity and potential, from the hopeless to a hopeful continent. This is all fantastic news, but even as we celebrate it, we can’t get lost in it. It’s clear that after years of missteps and false starts, Africa is on the right track. But it’s also clear that Africa’s challenges have not gone away. They still exist, in some cases triggered by the accelerated growth we’ve welcomed. The challenges ahead… Africa continues to face persistent, structural development hurdles. It continues to lag behind the rest of the world in most economic indicators. So, the overriding question about Africa’s outlook is how to build on the successes so far; how to consolidate the economic gains into something greater? The recent report of the High–Level Panel of Eminent Persons on the Post-2015 Development Agenda calls for a paradigm shift, a profound structural transformation to overcome obstacles to sustained prosperity. For our discussion today, I would like to mention the big transformative shifts that are, in my view, required for Africa to ensure that continuing growth is sustainable—economically, socially, and environmentally. First is the lack of economic diversification. In almost all countries, production is dominated by the primary sector, either in agriculture or in minerals. Manufacturing sectors that are internationally competitive barely exist. As a result, productivity remains low, wages remain stagnant, and a majority of economies remain dangerously vulnerable to external shocks and the whims of private capital. Second is rising inequality amid non-inclusive growth. Africa’s boom is creating disturbing income gaps that will undermine long-term efforts to reduce poverty. A report released earlier this month by JICA at the Fifth Tokyo Conference on African Development (TICAD V) in Yokohama echoed this theme, noting that not only has inequality been high, but it’s been increasing over time. During the 2000s, two-thirds of African countries had a Gini coefficient above 40, the threshold for high inequality. Third is rapid urbanization and its impact on physical and social infrastructure. Over the last two decades, Africa has experienced the highest urban growth in the developing world. In the long run, increased urbanization is good, because cities fuel innovation and foster social mobility. But cities must be livable. Cracks in the social infrastructure, exacerbated by the rising inequality I just mentioned, are already showing as slums and urban poverty proliferate.   Fourth is unemployment. Population and economies may be growing, but jobs are not. And that’s a severe problem, especially among African youth. Approximately 10–12 million young people enter the labor market annually, and nearly all of them, even the well-educated, struggle with joblessness or in jobs that are insecure and pay low wages. In addition, millions of Africans lack the skills required for productive sectors, leading to an inefficient and underused labor force. And fifth is Africa’s adverse climate. Countries must continually cope, adapt, and build resilience to the devastating impact of natural disasters and climate change. It’s encouraging that in Yokohama the UN and the World Bank jointly reiterated the importance of integrating these considerations into development policy and programs. These challenges are immense, but they’re not insurmountable. That we’re even concerned about a “next wave” of development problems speaks to how far we’ve come. That’s why Africa’s economic transformation, not just its growth, is so critical. Transformation won’t solve all of Africa’s most pressing problems, but it’s a necessary condition to start. For me, economic transformation is also a personal story. A few years ago, following my 10-year stint as the Executive Secretary of the UN Economic Commission for Africa in Addis Ababa, I founded the African Center for Economic Transformation, based in Accra, to help countries take that next step. At ACET, we assist governments in implementing the right policies and creating the right environment to spur sustainable development in the interest of long-term, structural transformation. This fall, we will launch our flagship publication, the African Transformation Report, with events in Johannesburg, Addis Ababa, London, and here at the World Bank on the margins of the Annual Meeting. The report provides data and analysis for policymakers and the private sector to spur economic transformation. It will also introduce the African Transformation Index to show how countries are transforming over time and where they stand against each other on measures of five attributes of transformation: diversification, export competitiveness, productivity, technology, and human well-being. Copies of a preview to the report are at the back of the room. They give a sense of the structure and contents of the full report. I urge those interested to pick one up. Transformation will have implications for leadership, as well. At a seminar in conjunction with the recently concluded African Development Bank meeting in Marrakech, a distinguished panel of political leaders, businessmen, and policymakers debated the type of leadership Africa needs if the continent is to attain structural transformation in the face of its major challenges. Their conclusion was that African leaders must combine technical competence, personal integrity, and a commitment to the well-being of the African people above all else. A key test for Africa’s collective leadership is demonstrating the political will to accelerate economic integration and join the ranks of emerging economies by adding value to natural resources and increasing trade among African countries. That has been the goal since the inception of the Organization for African Unity in 1963, and it will be at the core of the African Union’s Vision 2063, to be set next January. I am sure Amina will have a lot to say on this in the panel discussion to follow shortly. We should also expect this leadership to propel a transformative shift in Africa’s relations with its development partners and its place in the international economy. Profound changes are altering the global finance system. Investment flows, trade patterns, and the aid architecture are evolving, while the value of South-South cooperation and the influence of the BRICS are rising. These changes demand adroitness on the part of African governments to maximize the quality and quantity of external resources for their continent’s transformation. In particular, the World Bank’s relations with Africa should continue to evolve, drawing on the institution’s past successes and failures, cognizant of the growing confidence and dynamism among the African people and their governments, and aware of the considerable vulnerabilities that still plague the continent. Let me conclude this discussion of a vision for Africa’s future with two queries: If economic transformation is truly realized, where will Africa be in another 25 years? What kind of life will the next generation have? These are the questions many of us are working to answer right now. And they are questions that I think Stanley would be… pleased … that we’re asking. Conclusion Stanley most likely would scoff at an event like this in his name, but he would surely welcome the discussion. I think he would be proud to see the broad extent of his influence on future generations. And that’s the final thing we should celebrate before concluding here today—Stanley’s continuing legacy, not just as an economist or researcher but as a leader, and as a friend. He personified the dedication and the passion for development that we should all hope to have. And he did it with an unfailing sense of humanity. He certainly influenced the course of my career and life, and though I’ve been the one up here talking, I’m also just one of many, a single representative of the people Stanley inspired or motivated. I’ve shared my thoughts; so I felt it would be fitting to hear from a few others, including some of those who helped organize this tribute. Martin Wolf, who’s chairing our upcoming panel, was a Stanley protégé when he joined the Bank in 1971. After a few years, he moved on to journalism, and he’s now a celebrated economics commentator at the Financial Times. Martin told me that Stanley made an “unforgettable impression” on him, due to an “extraordinarily rare” set of characteristics. His enthusiasm. His willingness to welcome subordinates whom he believed to be brighter and better trained than he was. His modesty about his own intellect. “Initially,” Martin said, “Stanley regarded my decision to become a journalist as surprising and rather disappointing, perhaps even frivolous. I hope he changed his mind later on, because Stanley always stood for important ideas about the world. And he strengthened my view that getting ideas right mattered.” Like Martin, Shankar Acharya also joined the Bank in 1971, and he too became one of Stanley’s protégés. Eventually, he returned to his native India, where he took on a prominent role as the chief economic adviser to the Indian government during the 1990s, a period of impressive economic growth for the country. “Stanley Please was the best boss I ever had,” Shankar said. “His warmth, humor, and camaraderie, and his devotion to high standards, set him apart as leader and as a mentor. Over time, my mentor morphed into my good friend. His hearty laugh echoes in my mind.” Not all of Stanley’s protégés dispersed around the world, of course. Jim Adams, a YP contemporary and good buddy of mine, first cut his teeth on Stanley’s team, and he stayed on at the Bank. In fact, he stayed … and stayed … and stayed! Jim recently retired after almost 40 years. He became a vice president for central operational policy and later vice president for East Asia. Since he retired from the Bank, Jim has been going around calling himself Tanzania Jim. Why? Sure he loves the safari. But the real reason is that the many years he spent working on Africa were the most fulfilling of his outstanding career at the Bank. In Jim’s words, “Stanley was a determined optimist about the Bank. I remember so clearly his view that if you as an individual felt something was important, you could get it done. This view was central to so many things I tried to do in the Bank. It is a key message to all Bank staff.” We now know the secret to Jim’s success! This month marks 50 years since Stanley joined the Bank, and we could talk at endless length about the policies, processes, and people that he influenced, but his greatest influence no doubt lives on with his family. He wrote that his autobiography, “The Making of a Meritocrat,” was intended not for a general audience but for members of subsequent generations of the family who he hoped may be interested “in the life of at least one of their ancestors.” It’s an honor to have Brian and Moira and other members of the family with us today. We are proud to recognize your great ancestor and to celebrate his achievements. Stanley retired as a fulltime Bank employee in September 1983, though he continued to consult, advise, and publish research for decades. But he fretted that one of the many “distressing aspects” of retiring from the Bank was that colleagues ask you to look backward, to reflect on what has changed and what lessons can be drawn over time. “My instincts,” he wrote, “are always to look forward at emerging problems and challenges. But history is sometimes useful provided it does not become too antiquarian or nostalgic.” In any case, he added, “colleagues persist.” Yes, Stanley, we do persist. And so do you, in much of what we do. Thank you.  ","date":"2013-06-24T13:50:00Z","contenttype":"Speeches and Transcripts"},"_67650ad4eafbec1b839ffb3d8837cff7b5c45244":{"id":"67650ad4eafbec1b839ffb3d8837cff7b5c45244","title":"Stanley Please Memorial Event - Remarks by Mr. Makhtar Diop, Regional Vice President, Africa Region","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2013/06/24/remarks-by-mr-makhtar-diop-regional-vice-president-africa-region","descr":"Remarks by Mr. Makhtar Diop, Regional Vice President, Africa Region","keywd":"regions:Africa","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","cqpath":"/content/wb-home/en/news/speech/2013/06/24/remarks-by-mr-makhtar-diop-regional-vice-president-africa-region","regionname":"Africa","wcmsource":"cq5","content":" It’s a great pleasure to be here today with so many friends and colleagues to honor a former Bank staff member, and someone who really had Africa’s interests at heart.  I’d like to structure my remarks around three interconnected issues: Stanley’s insights concerning the centrality of policy reform, the policy framework in Africa today, and Stanley’s legacy in terms of the Bank’s role.  First, Stanley Please’s greatest contribution to Africa and the World Bank—the insight that policy reforms are necessary to make development projects productive—is also one of the most controversial, because it is associated with the infamous “structural adjustment programs” of the 1980s and 1990s.  That his insight was seminal is borne out by the fact that it seems obvious today.The aid effectiveness literature has provided empirical justification.The World Bank’s CPIA—which allocates aid according to a country’s policy and institutional quality—has internalized the message.African policymakers are constantly concerned about their policy framework -- I know this is true: I was one of them in Senegal.  It is also true that most of the structural adjustment programs of the 1980s and 1990s, which aimed to reform policies and institutions so that investment could be productive, had a mixed record (to put it politely)Economic growth during these decades was barely enough to keep up with population growth.Poverty increased.The programs were hugely controversial in the countries themselves.  Some governments (as in Benin) fell, most ended the period with unsustainable debt, necessitating debt relief.Even the policy framework did not improve in many countries -- exchange rates were overvalued; financial sectors were weak and fragile, and trade restrictions remained, or were re-instated.  Looking back, I think we can see why the record was mixed.  Let me point to a few reasons.  There was perhaps too much focus on the big macroeconomic issues, and a lack of understanding of the complexities of reform.Trying to get the price right through liberalization was important, but an oversimplification.  As we saw, liberalizing prices did not necessarily lead to increased competition, or result in the anticipated supply response.  The idea that a reduced role for the state was better was also an oversimplification.  As we have learned from experience, it is much more complex. To take education, for example.  Increasing enrollment without also focusing on the quality of education simply meant that the quality of education declined, with consequences that are still felt. The reforms of the 80s and 90s totally underestimated the importance of political economy, and there was limited recognition that vested interests could de-rail reform.There was a tendency to think that economics was separated from politics, which was not at all the case. Let me give you an example of vested interests at work in Senegal.  At the time, the most important people were the Director of Commerce and the Director of the National Bank, because they were the people who gave out the licenses for trade and decided who got loans.  The easiest way to get either was to pay a bribe, so there was no support for reform. When I became Minister of Finance twenty years later, the economy was still paying the price.   Issues of distribution and the social impact of reforms were also completely missed. By the time policy makers and the Bank woke up because of protests and riots in the streets, it was too late and any support for reform had been eroded. The “social dimensions of adjustment” add-ons were an attempt to mitigate the impact and show concern for the poor, but they were neither very effective nor convincing.  The risk premium for private capital was misunderstood and underestimated. There was an assumption that privatization would result in inflows of private capital and increased competition, and that social welfare would improve as a result of growth.Instead, what happened was that a state monopoly was replaced by a private sector monopoly.   My second point is that today the situation is very different in Africa.  How is it different?Africa is growing—faster than any other region (except parts of Asia).Poverty is falling.The policy framework has improved significantly (Africa’s CPIA score for economic management is higher than other low-income countries).External capital flows exceed foreign aid.  Why is it different? African policymakers undertook many of the same policy reforms that were advocated under structural adjustment—but this time they worked!The difference was that, starting in the late-1990s, these reforms were designed and implemented by Africans themselves.  Policy makers had internalized the need for reform and the lessons of the past.There was a new generation of well-trained technocrats who designed policies and programs based on deep understanding of the issues and problems—like Kwesi Botchwey in Ghana—who is with us today, Emmanuel Tumusiime in Uganda, Benno Ndulu in Tanzania, Njuguna N’dungu in Kenya, some guy named Diop in Senegal…This generation of policy makers understood the complexities of reforms, but also their necessity.  Within Ministries of Finance there is now broad recognition that hyperinflation hurts the poor and that over protection hurts traders and small businesses.  Another change from the past is the understanding that good economic policies can help politicians.The end of the cold war ushered in competitive elections in most African countries. To be elected, governments needed to pursue pro-poor policies, such as competitive exchange rates and high agricultural prices.Having pursued these policies and registered strong growth, there was greater political support for further reform policies. A virtuous cycle and new social contract were created.  Voters are now better informed and have more opportunities to influence policies.  This new social contract is still being put in place, but there is an understanding that growth is not enough, and that issues of inclusion have to be addressed. Let me give you an example from Senegal.  Once, when I was Minister of Finance I had just given a speech about growth, and I asked a taxi driver what he thought about the economic situation and prospects.  His response was “I can’t eat growth.”That taught me that without the right policies and the right social contract, growth will not result in benefits for ordinary people. This is still a challenge for African countries – growth is often driven by capital intensive sectors.  We need to make sure that ordinary people benefit.   One issue that still remains is the high risk premium for private capital.  There is still a bias against investing in Africa and a perception that it is high-risk.  This is changing, but not fast enough.  My third point is that the new Africa—and the relationship between African countries and their development partners—confirm Stanley Please’s legacy.  His commitment to Africans and to young people was deep.  He believed Africans should define their own development priorities.  The development paradigm has shifted:Donor partners now recognize that reforms need to be “owned” by the people of Africa.They also realize that African governments need to be given the space to design and implement their self-defined reforms.The World Bank understands that its role is to support the process of reform in countries, not dictate what the reforms should be.African policy makers have the confidence to set and implement their own reform agenda.  Within this new development paradigm, we need to address current challenges so that the continent can continue to move forward. Let me highlight a few of them.  We need to diversify the sources of growth, and make it less capital intensive. This is part of the new social contract, and job creation will be crucial.  Ordinary people have to feel the benefits of growth.  We need to look beyond orthodox answers and find solutions that fit the circumstances. For example, in management of natural resources we need to balance the demands of the present with the demands of the future.Countries like Norway can put profits from natural resources into funds so that future generations can benefit.  It is harder for African countries, given current income levels.It may be necessary for African countries to invest more now to change the trajectory and increase the number of people moving out of poverty.  A last point about moving forward is also part of Stanley’s legacy.  It is the importance of data. African policy makers today are faced with a real problem of paucity of accurate data. So my final point is that good information and data is a not only a public good, but that it is also essential for policy making.  As Stanley realized, you need to have accurate information in order to implement sound policies.   Thank you for giving me the opportunity to speak.  It is fitting that today, as Africa enjoys unprecedented growth, we honor Stanley Please, whose twin visions of the importance of policy, and the importance of empowering Africans, are finally being realized. ","content_1000":" It’s a great pleasure to be here today with so many friends and colleagues to honor a former Bank staff member, and someone who really had Africa’s interests at heart.  I’d like to structure my remarks around three interconnected issues: Stanley’s insights concerning the centrality of policy reform, the policy framework in Africa today, and Stanley’s legacy in terms of the Bank’s role.  First, Stanley Please’s greatest contribution to Africa and the World Bank—the insight that policy reforms are necessary to make development projects productive—is also one of the most controversial, because it is associated with the infamous “structural adjustment programs” of the 1980s and 1990s.  That his insight was seminal is borne out by the fact that it seems obvious today.The aid effectiveness literature has provided empirical justification.The World Bank’s CPIA—which allocates aid according to a country’s policy and institutional quality—has internalized the message.African policymakers are co","displayconttype":"Speeches and Transcripts","originating_unit":"EXTCC","originating_unit_exact":"EXTCC","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Speeches and Transcripts","node_id":"67650ad4eafbec1b839ffb3d8837cff7b5c45244","wn_title":"Stanley Please Memorial Event - Remarks by Mr. Makhtar Diop, Regional Vice President, Africa Region","wn_desc":" It’s a great pleasure to be here today with so many friends and colleagues to honor a former Bank staff member, and someone who really had Africa’s interests at heart.  I’d like to structure my remarks around three interconnected issues: Stanley’s insights concerning the centrality of policy reform, the policy framework in Africa today, and Stanley’s legacy in terms of the Bank’s role.  First, Stanley Please’s greatest contribution to Africa and the World Bank—the insight that policy reforms are necessary to make development projects productive—is also one of the most controversial, because it is associated with the infamous “structural adjustment programs” of the 1980s and 1990s.  That his insight was seminal is borne out by the fact that it seems obvious today.The aid effectiveness literature has provided empirical justification.The World Bank’s CPIA—which allocates aid according to a country’s policy and institutional quality—has internalized the message.African policymakers are constantly concerned about their policy framework -- I know this is true: I was one of them in Senegal.  It is also true that most of the structural adjustment programs of the 1980s and 1990s, which aimed to reform policies and institutions so that investment could be productive, had a mixed record (to put it politely)Economic growth during these decades was barely enough to keep up with population growth.Poverty increased.The programs were hugely controversial in the countries themselves.  Some governments (as in Benin) fell, most ended the period with unsustainable debt, necessitating debt relief.Even the policy framework did not improve in many countries -- exchange rates were overvalued; financial sectors were weak and fragile, and trade restrictions remained, or were re-instated.  Looking back, I think we can see why the record was mixed.  Let me point to a few reasons.  There was perhaps too much focus on the big macroeconomic issues, and a lack of understanding of the complexities of reform.Trying to get the price right through liberalization was important, but an oversimplification.  As we saw, liberalizing prices did not necessarily lead to increased competition, or result in the anticipated supply response.  The idea that a reduced role for the state was better was also an oversimplification.  As we have learned from experience, it is much more complex. To take education, for example.  Increasing enrollment without also focusing on the quality of education simply meant that the quality of education declined, with consequences that are still felt. The reforms of the 80s and 90s totally underestimated the importance of political economy, and there was limited recognition that vested interests could de-rail reform.There was a tendency to think that economics was separated from politics, which was not at all the case. Let me give you an example of vested interests at work in Senegal.  At the time, the most important people were the Director of Commerce and the Director of the National Bank, because they were the people who gave out the licenses for trade and decided who got loans.  The easiest way to get either was to pay a bribe, so there was no support for reform. When I became Minister of Finance twenty years later, the economy was still paying the price.   Issues of distribution and the social impact of reforms were also completely missed. By the time policy makers and the Bank woke up because of protests and riots in the streets, it was too late and any support for reform had been eroded. The “social dimensions of adjustment” add-ons were an attempt to mitigate the impact and show concern for the poor, but they were neither very effective nor convincing.  The risk premium for private capital was misunderstood and underestimated. There was an assumption that privatization would result in inflows of private capital and increased competition, and that social welfare would improve as a result of growth.Instead, what happened was that a state monopoly was replaced by a private sector monopoly.   My second point is that today the situation is very different in Africa.  How is it different?Africa is growing—faster than any other region (except parts of Asia).Poverty is falling.The policy framework has improved significantly (Africa’s CPIA score for economic management is higher than other low-income countries).External capital flows exceed foreign aid.  Why is it different? African policymakers undertook many of the same policy reforms that were advocated under structural adjustment—but this time they worked!The difference was that, starting in the late-1990s, these reforms were designed and implemented by Africans themselves.  Policy makers had internalized the need for reform and the lessons of the past.There was a new generation of well-trained technocrats who designed policies and programs based on deep understanding of the issues and problems—like Kwesi Botchwey in Ghana—who is with us today, Emmanuel Tumusiime in Uganda, Benno Ndulu in Tanzania, Njuguna N’dungu in Kenya, some guy named Diop in Senegal…This generation of policy makers understood the complexities of reforms, but also their necessity.  Within Ministries of Finance there is now broad recognition that hyperinflation hurts the poor and that over protection hurts traders and small businesses.  Another change from the past is the understanding that good economic policies can help politicians.The end of the cold war ushered in competitive elections in most African countries. To be elected, governments needed to pursue pro-poor policies, such as competitive exchange rates and high agricultural prices.Having pursued these policies and registered strong growth, there was greater political support for further reform policies. A virtuous cycle and new social contract were created.  Voters are now better informed and have more opportunities to influence policies.  This new social contract is still being put in place, but there is an understanding that growth is not enough, and that issues of inclusion have to be addressed. Let me give you an example from Senegal.  Once, when I was Minister of Finance I had just given a speech about growth, and I asked a taxi driver what he thought about the economic situation and prospects.  His response was “I can’t eat growth.”That taught me that without the right policies and the right social contract, growth will not result in benefits for ordinary people. This is still a challenge for African countries – growth is often driven by capital intensive sectors.  We need to make sure that ordinary people benefit.   One issue that still remains is the high risk premium for private capital.  There is still a bias against investing in Africa and a perception that it is high-risk.  This is changing, but not fast enough.  My third point is that the new Africa—and the relationship between African countries and their development partners—confirm Stanley Please’s legacy.  His commitment to Africans and to young people was deep.  He believed Africans should define their own development priorities.  The development paradigm has shifted:Donor partners now recognize that reforms need to be “owned” by the people of Africa.They also realize that African governments need to be given the space to design and implement their self-defined reforms.The World Bank understands that its role is to support the process of reform in countries, not dictate what the reforms should be.African policy makers have the confidence to set and implement their own reform agenda.  Within this new development paradigm, we need to address current challenges so that the continent can continue to move forward. Let me highlight a few of them.  We need to diversify the sources of growth, and make it less capital intensive. This is part of the new social contract, and job creation will be crucial.  Ordinary people have to feel the benefits of growth.  We need to look beyond orthodox answers and find solutions that fit the circumstances. For example, in management of natural resources we need to balance the demands of the present with the demands of the future.Countries like Norway can put profits from natural resources into funds so that future generations can benefit.  It is harder for African countries, given current income levels.It may be necessary for African countries to invest more now to change the trajectory and increase the number of people moving out of poverty.  A last point about moving forward is also part of Stanley’s legacy.  It is the importance of data. African policy makers today are faced with a real problem of paucity of accurate data. So my final point is that good information and data is a not only a public good, but that it is also essential for policy making.  As Stanley realized, you need to have accurate information in order to implement sound policies.   Thank you for giving me the opportunity to speak.  It is fitting that today, as Africa enjoys unprecedented growth, we honor Stanley Please, whose twin visions of the importance of policy, and the importance of empowering Africans, are finally being realized. ","master_date":"2013-06-24T13:48:00Z","master_date_srt":"2013-06-24T13:48:00Z","master_recent_date_srt":"2013-06-24T13:48:00Z","master_recent_date":"2013-06-24T13:48:00Z","masterregion_exact":"Africa","short_description":"Remarks by Mr. Makhtar Diop, Regional Vice President, Africa Region","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":" It’s a great pleasure to be here today with so many friends and colleagues to honor a former Bank staff member, and someone who really had Africa’s interests at heart.  I’d like to structure my remarks around three interconnected issues: Stanley’s insights concerning the centrality of policy reform, the policy framework in Africa today, and Stanley’s legacy in terms of the Bank’s role.  First, Stanley Please’s greatest contribution to Africa and the World Bank—the insight that policy reforms are necessary to make development projects productive—is also one of the most controversial, because it is associated with the infamous “structural adjustment programs” of the 1980s and 1990s.  That his insight was seminal is borne out by the fact that it seems obvious today.The aid effectiveness literature has provided empirical justification.The World Bank’s CPIA—which allocates aid according to a country’s policy and institutional quality—has internalized the message.African policymakers are constantly concerned about their policy framework -- I know this is true: I was one of them in Senegal.  It is also true that most of the structural adjustment programs of the 1980s and 1990s, which aimed to reform policies and institutions so that investment could be productive, had a mixed record (to put it politely)Economic growth during these decades was barely enough to keep up with population growth.Poverty increased.The programs were hugely controversial in the countries themselves.  Some governments (as in Benin) fell, most ended the period with unsustainable debt, necessitating debt relief.Even the policy framework did not improve in many countries -- exchange rates were overvalued; financial sectors were weak and fragile, and trade restrictions remained, or were re-instated.  Looking back, I think we can see why the record was mixed.  Let me point to a few reasons.  There was perhaps too much focus on the big macroeconomic issues, and a lack of understanding of the complexities of reform.Trying to get the price right through liberalization was important, but an oversimplification.  As we saw, liberalizing prices did not necessarily lead to increased competition, or result in the anticipated supply response.  The idea that a reduced role for the state was better was also an oversimplification.  As we have learned from experience, it is much more complex. To take education, for example.  Increasing enrollment without also focusing on the quality of education simply meant that the quality of education declined, with consequences that are still felt. The reforms of the 80s and 90s totally underestimated the importance of political economy, and there was limited recognition that vested interests could de-rail reform.There was a tendency to think that economics was separated from politics, which was not at all the case. Let me give you an example of vested interests at work in Senegal.  At the time, the most important people were the Director of Commerce and the Director of the National Bank, because they were the people who gave out the licenses for trade and decided who got loans.  The easiest way to get either was to pay a bribe, so there was no support for reform. When I became Minister of Finance twenty years later, the economy was still paying the price.   Issues of distribution and the social impact of reforms were also completely missed. By the time policy makers and the Bank woke up because of protests and riots in the streets, it was too late and any support for reform had been eroded. The “social dimensions of adjustment” add-ons were an attempt to mitigate the impact and show concern for the poor, but they were neither very effective nor convincing.  The risk premium for private capital was misunderstood and underestimated. There was an assumption that privatization would result in inflows of private capital and increased competition, and that social welfare would improve as a result of growth.Instead, what happened was that a state monopoly was replaced by a private sector monopoly.   My second point is that today the situation is very different in Africa.  How is it different?Africa is growing—faster than any other region (except parts of Asia).Poverty is falling.The policy framework has improved significantly (Africa’s CPIA score for economic management is higher than other low-income countries).External capital flows exceed foreign aid.  Why is it different? African policymakers undertook many of the same policy reforms that were advocated under structural adjustment—but this time they worked!The difference was that, starting in the late-1990s, these reforms were designed and implemented by Africans themselves.  Policy makers had internalized the need for reform and the lessons of the past.There was a new generation of well-trained technocrats who designed policies and programs based on deep understanding of the issues and problems—like Kwesi Botchwey in Ghana—who is with us today, Emmanuel Tumusiime in Uganda, Benno Ndulu in Tanzania, Njuguna N’dungu in Kenya, some guy named Diop in Senegal…This generation of policy makers understood the complexities of reforms, but also their necessity.  Within Ministries of Finance there is now broad recognition that hyperinflation hurts the poor and that over protection hurts traders and small businesses.  Another change from the past is the understanding that good economic policies can help politicians.The end of the cold war ushered in competitive elections in most African countries. To be elected, governments needed to pursue pro-poor policies, such as competitive exchange rates and high agricultural prices.Having pursued these policies and registered strong growth, there was greater political support for further reform policies. A virtuous cycle and new social contract were created.  Voters are now better informed and have more opportunities to influence policies.  This new social contract is still being put in place, but there is an understanding that growth is not enough, and that issues of inclusion have to be addressed. Let me give you an example from Senegal.  Once, when I was Minister of Finance I had just given a speech about growth, and I asked a taxi driver what he thought about the economic situation and prospects.  His response was “I can’t eat growth.”That taught me that without the right policies and the right social contract, growth will not result in benefits for ordinary people. This is still a challenge for African countries – growth is often driven by capital intensive sectors.  We need to make sure that ordinary people benefit.   One issue that still remains is the high risk premium for private capital.  There is still a bias against investing in Africa and a perception that it is high-risk.  This is changing, but not fast enough.  My third point is that the new Africa—and the relationship between African countries and their development partners—confirm Stanley Please’s legacy.  His commitment to Africans and to young people was deep.  He believed Africans should define their own development priorities.  The development paradigm has shifted:Donor partners now recognize that reforms need to be “owned” by the people of Africa.They also realize that African governments need to be given the space to design and implement their self-defined reforms.The World Bank understands that its role is to support the process of reform in countries, not dictate what the reforms should be.African policy makers have the confidence to set and implement their own reform agenda.  Within this new development paradigm, we need to address current challenges so that the continent can continue to move forward. Let me highlight a few of them.  We need to diversify the sources of growth, and make it less capital intensive. This is part of the new social contract, and job creation will be crucial.  Ordinary people have to feel the benefits of growth.  We need to look beyond orthodox answers and find solutions that fit the circumstances. For example, in management of natural resources we need to balance the demands of the present with the demands of the future.Countries like Norway can put profits from natural resources into funds so that future generations can benefit.  It is harder for African countries, given current income levels.It may be necessary for African countries to invest more now to change the trajectory and increase the number of people moving out of poverty.  A last point about moving forward is also part of Stanley’s legacy.  It is the importance of data. African policy makers today are faced with a real problem of paucity of accurate data. So my final point is that good information and data is a not only a public good, but that it is also essential for policy making.  As Stanley realized, you need to have accurate information in order to implement sound policies.   Thank you for giving me the opportunity to speak.  It is fitting that today, as Africa enjoys unprecedented growth, we honor Stanley Please, whose twin visions of the importance of policy, and the importance of empowering Africans, are finally being realized. ","date":"2013-06-24T13:48:00Z","contenttype":"Speeches and Transcripts"},"_80ee6651c1f8db6d39522cae4e1ed14b48202bca":{"id":"80ee6651c1f8db6d39522cae4e1ed14b48202bca","title":"TRANSCRIPT: Reuters Newsmaker Event with World Bank Group President Jim Yong Kim","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2013/06/19/transcript-reuters-newsmaker-event-with-world-bank-group-president-jim-yong-kim","descr":"World Bank Group President discussion at the Reuters Newsmaker event in London on June 19, 2013","keywd":"People:Jim Yong Kim","lang":{"0":{"cdata!":"English"}},"cqpath":"/content/wb-home/en/news/speech/2013/06/19/transcript-reuters-newsmaker-event-with-world-bank-group-president-jim-yong-kim","wcmsource":"cq5","content":" MR. SMITH: Good morning. We’re honored to have Dr. Kim as our guest this morning and he comes here directly from attending the G8 meeting in Northern Ireland. This is President Jim Yong Kim’s first major public event in London since he was appointed World Bank Group President last year. This Newsmaker coincides with the release of an important new World Bank report on climate change. There are hard copies of the report outside of the auditorium and memory sticks on all the seats in the auditorium.  Dr. Kim’s made tackling climate change one of his priorities for the World Bank Group and he’s called it a “fundamental threat to economic development and the fight against poverty.” As he nears the end of his first year in office, Kim’s developing a new strategy for the World Bank Group: to be put to the board at the annual meetings in Washington in October of this year. This strategy will be based on two guiding goals for the organization: One, the end of extreme poverty by 2030; and secondly, ensuring shared prosperity by boosting the incomes of the bottom 40% of the population in each country.  We're pleased to have him with us here today and we’re pleased to be at the center of the discussion at such an important time in the world. With that, I’ll turn it over to Dr. Kim. DR. KIM: Thank you very much. It’s great to be here and I’d just - to begin with, let me apologize, I’m fighting a bit of a cold and so you may have seen me popping – those are throat lozenges, nothing else, I just want to let you know. I’m pleased to be here today to release our new climate change report called “Climate Extremes: Regional Impacts and the Case for Resilience”. Last year, we published a report on the challenges we’d be facing if the global temperature rose to 4 degrees Celsius above pre-industrial levels. As you are aware, 4 degrees Celsius presents us with a world of extremes that must be avoided at all costs. Today for the second report, we asked scientists at the Potsdam Institute for Climate Impact Research and Climate Analytics to prepare a climate forecast for a range of temperatures up to 4 degrees Celsius with a special focus on 2 degrees Celsius. We asked them to drill down for a detailed look at three regions: Sub-Saharan Africa, South Asia and Southeast Asia because climate change will affect regions differently and because a 2-degree Celsius world will disproportionately hurt the poorest.  The conclusions in this report should make all of us lose sleep over what our world will look like in our lifetimes. The conclusions are clear. A world that warms by 2 degrees Celsius, perhaps in just 20 or 30 years will cause vast parts of Africa, African croplands to wither, submerge large swaths of cities in South Asia and kill off much of the fisheries in some parts of Southeast Asia. We must do all that we can to avoid these catastrophes. This report tells us that talking about climate change averages obscures the real dangers ahead. It tells us that the rise of temperatures by a little over 1 degree Celsius on average is not a matter of slightly warmer days. A 1-degree Celsius difference means that the world, for instance, will start processing water much differently which will lead to shortages of water in some places, flooding in other areas as well as more cyclones in still more areas.  Consider these forecasts in the report. In Sub-Saharan Africa by the 2030s, drought and heat will leave 40% of the land now growing maize unable to support the crop any longer. In South Asia, shifting rain patterns will leave some areas underwater and others without enough water for power generation, agriculture or drinking. Sea level rise coupled with more intense tropical cyclones could mean extensive flooding in coastal areas of Bangladesh as well as in cities such as Kolkata and Mumbai. In Southeast Asia, at 2 degrees Celsius, maximum fish catch will decline by 50% in the Southern Philippines. Loss of the coral reefs would diminish tourism, reduce fish stocks, and leave coastal communities more vulnerable to less frequent but increasingly violent storms. Across our regions, the growing movement of impacted communities into urban areas could lead to ever higher numbers of people in slums and other informal settlements being exposed to heat waves, flooding, mudslides and epidemics of disease. This is a 2-degree Celsius world. It’s coming unless world leaders do something about it. At the World Bank Group we’re  doing everything we can to avoid a 2-degree Celsius world in light of these and other findings on climate change, every project that we do now will be informed by analysis that spells out any impact on climate change. We are developing tools that help countries better assess and adapt to climate change, including greenhouse gas emissions tracking, helping countries become more energy-efficient and advising them on building more climate-resilient infrastructure. We’re working with partners on building low-carbon climate-resilient cities, transforming the way we farm to maximize productivity and resilience and doubling global renewable energy and efficiency. And we can’t ignore the financing challenge. The world needs to find innovative ways to set an appropriate price on carbon and roll back fossil fuel subsidies. If we can get prices right, we can redirect finance to low carbon growth, lessen the chances of a 2-degree warming and avoid a 4-degree world.  I hope this report will help convince leaders that the benefits of strong, early action on climate change far outweigh the costs. Our successes and failures in this fight against climate change will, in my view, define our generation. Thank you. MR. ADLER: Well thank you, Dr. Kim. It’s great to have you here. DR. KIM: Thanks, Steve.  MR. ADLER: You all probably know Dr. Kim's extraordinary credentials as a doctor, as an anthropologist, a co-founder of Partners in Health, was recently President of Dartmouth College. You may not know that he was the quarterback – this is important to people who know American football – he was the quarterback of his high school football team in Muscatine, Iowa and he was also point guard on the basketball team. So you immediately know that the leadership skills started very, very early.  DR. KIM: Well don’t be too impressed, our football team lost every game and we had the longest losing streak in the nation, 56 games in a row. So it was a multi-generational losing streak.  MR. ADLER: It was a better introduction if you hadn’t said that. So again, let’s – since you are just back from the G8 and I think everybody was very interested in what happened at the G8, probably the most enduring image from the G8 is that wonderful Reuters photo of Presidents Putin and Obama sitting there which has got to be a textbook study of the meaning of body language because it's quite extraordinary. But one thing that did come out that didn't actually get a lot of publicity was that the G8, in its communiqué, did endorse the signing of a greenhouse gas emissions pact by 2015. How significant is it that the G8 supported it and Russia's going to be very important and that other emerging countries? Do you think we're really heading towards that type of agreement?  DR. KIM: Well I sure hope so, Steve. In the United States, of course, now that you mentioned it, of course President Obama's been very clear especially in his second term that he's going to tackle this problem. John Kerry, the Secretary of State is probably the champion previously in the House and the Senate on tackling climate change. So we have a lot of hope that the United States is stepping forward. It's great that the G8 endorsed a real movement, I think, toward a global agreement. The other country that I think has moved a lot even in six months is China. I mean they have introduced some really aggressive, the Shenzhen trading scheme, carbon trading scheme, they’re really serious about establishing a national carbon market. And in my recent talks with them, they said that this past winter where the pollution was so bad and the figures are coming out, now 1.2 million people died last year as a result of the pollution. I mean these folks - In China. This is the black carbon, the so-called short-lived climate pollutants that have just wreaked havoc in China. And so there’s a new spirit in China. The new government, I think, is really committed to tackling climate change. And so if we can get the European countries, the United States and China to agree to really tackle this issue, that’s the huge bulk of the issue. This is where we really have to make progress.  MR. ADLER: So climate change still remains a controversial topic despite the fact that there have been so many scientific reports like this one. And there was a report in May that came out in Nature Geoscience that's gotten a lot of attention that suggests a slowing of global warming in the last 14 years. And opponents are doing the types of things you support have seized on that and said look, this is not a serious problem as people have said. What’s your read of that report and how significant is it in shaping global opinion on the topic? DR. KIM: The critical thing is that you can’t really look at the last 10 years which that report - it was really a 10-year study. And the key is looking back from pre-industrial times through now and looking at what the trends are. Because of that report, the scientists went back and asked the question, so what did happen? Did it really slow down? What was really the reason for it? And it turns out that much of the carbon was absorbed in the deep ocean. So for example, what we're seeing is that greater acidity when carbon dioxide goes into water, it turns into acid makes the water more acidic. And so that's what has happened. So presumably, the ocean has a carrying capacity. At some point it's going to stop being able to absorb the carbon. And then the thing that we're really worried about is that that might have happened because the carbon was enough to have the water absorb it. And then at some point it's going to stop. And so we could see then a really rapid increase in global temperatures. The point is right now there is 97%, 98% agreement that human-caused global warming is a reality. And so in my view, in medicine, there's almost nothing that I can think of that has 97% or 98% agreement. And so it's, if you disagree with the science of human-caused climate change, you're not disagreeing that there's human-caused- that there's human anthropogenic climate change. What you're disagreeing with is science itself. And as far as I know it's the best we got, that modern science is the best we have. And so I think it's really the time to stop arguing whether it's real or not. The scientists agree and I think the effects that we're seeing today are really quite real. We have to move on to start thinking about what we can do to both mitigate and adapt to climate change.  MR. ADLER: I mean thinking about your report, it's really highly apocalyptic. And my sense is that people don't respond that well to long range apocalyptic predictions. And we face it in business, we face it in everything, the short term versus the long term. So how do you get people to focus on something that appears to be off in the future when they're facing so many immediate problems, the economy's struggling, all the issues we all face. Why should people focus attention or how can we get them to focus attention?  DR. KIM: Part of what we're trying to do in this report is bring attention to it. But in bringing attention to it, the other thing that we want to do is just to give people a sense that there are things we can do right now. We need a global agreement. We need a global carbon market. We need countries all over the world to remove fossil fuel subsidies but those are really hard things to get to politically. In the meantime though, there are so many things we can do and one of the things that we're trying to stress in this report and all of the work we're doing is there's an opportunity right now to move toward renewable energies. There's great new technology. There's an opportunity right now to build cleaner cities. There are cities all over the world that have already made huge strides. For example in New York City, Mayor Bloomberg said we're going to reduce our carbon footprint by 30% by 2030. They're going to get there by 2017. And all the companies and the buildings and the people of New York City have gotten together and moved much more quickly than anyone thought. I was just in Delhi and it's an amazing sight to be behind a bus in Delhi. Now I've been to developing countries all over the world and you just expect black stuff to be coming out of it. Nothing, because the Supreme Court mandated that all buses and even the little puttputt motorcycles have to run in natural gas. So Hong Kong decades ago decided they're going to cut the number of cars in the city of Hong Kong by half in a pretty short period of time. So there's things we can do right now, cleaner cities, renewable energy and climate-smart agriculture is a term that’s thrown a lot these days. But there's tremendously exciting things that are going on in ways of new forms of agriculture, new ways of terracing and protecting the river banks - these kinds of interventions can have a huge impact on preserving the environment and actually putting carbon back into the ground. We have to now get to the stage where we're working everyday to do the small things that we can do right now and then push our leaders to come to these global agreements.  MR. ADLER: So you don't think the small things taken together add up to enough to make a big change. But in part what you're saying is if we see some results locally it might encourage global leaders to take it more seriously? DR. KIM: Let's just take one issue, the so-called short-lived climate pollutants- this is an issue when she was Secretary of State, Hillary Clinton really championed. I mean these have a huge impact and it's the black carbon that has had such an impact. So the black carbon is doing a bunch of things. Right now these are inefficient coal-burning factors that are spewing this black stuff in the air. We can decrease short-lived climate pollutants dramatically in a short period of time. Here's what it's doing. First of all it's getting in people's lungs and killing people. This is what we're seeing in China. But it's also going up into the air and covering the snow-capped peaks of mountains and that by making them darker it absorbs some light and it increases the melting. But if we can take action on those right now, we can actually delay the rise of temperature to two degrees centigrade. So these are not small things. If we can move rapidly to more renewables, if we can build cleaner cities and if we can institute climate-smart agriculture everywhere, we can have a very major impact on global warming and we can do it today and the real point Steve is that this is not a bleak future where nobody's showering and no one has energy. This is a bright future where people do have energy, people are living in economies that are growing but it'll just be a lot cleaner.  MR. ADLER: Okay. Your report goes into so many different risks to growth from global warming. It's a little hard to get your arms around kind of what are the most serious ones. What are you most worried about? Is it water or is it the lack of water, is it too much water? I mean if we can focus on kind of one major problem perhaps in one major place, just illustrate what you're most concerned about.  DR. KIM: Climate scientists say that carbon is the currency of climate change, water is the teeth. We're already seeing struggles and conflicts over access to water. This is what I'm most worried about. The fundamental issue, Stephen, and one I wasn't really aware of before coming into this job is that the earth is fundamentally handling water differently. The jet stream has changed. The El Nino and La Nina effects are changing.  MR. ADLER: Is that why it rains here now all the time? Instead of most of the time? DR. KIM: Well this is one of the recent findings, is that the very wet summers are related to the way that the earth is handling water differently. What some of the climate deniers say is, how can you tie a particular event to climate change. And that's not what we're saying. We're not saying that a particular event and climate change are directly causing and related. What we're saying is that the climate change scientists have predicted that extreme weather events are going to increase in number. And so we are having- I can't- I've lost count of the number of once in a lifetime events that have happened in the last two or three years. Duh, there's something going on here folks. Once in a lifetime events all the time? So this is what the prediction is. And so it's a hard thing because there's not a direct if I do this, this will happen. It's a kind of collective solidarity that we have to exercise on behalf of our children. But it's not just on behalf of our children. Let me just give you an example. By the 2030 or 2040, if we get to two degrees Celsius, Bangkok could be underwater. So if you Steve are planning to retire in Bangkok which is a great place, you’d have to rethink your plans. This is very real. I have a 12-year old, 13-year old son actually just had a birthday, and 4-year old son. And for them, this is real. And I can just see it. My kids already I can see the way they’re going to talk to me. They’re going to say, oh thanks Dad, you were President of the World Bank, what did you do when you knew this was going to happen to us, how could you have given us the world where we know that so many people who don’t have water, where we know- just think about it. 40% of the land today used to grow maize in Africa won’t be able to grow it anymore. This is huge. So the UK government I think very rightly has focused on nutrition. And they focus really I think brilliantly on something called stunting which is kids who are lower height for age, meaning they’re malnutrition has gone on for a long time, chronic malnutrition. This is going to be everywhere. I mean we’re going to have this problem everywhere. And so for us, now that we have set this goal of ending poverty, there is no way we’re going to get there by 2030 unless we begin to tackle this issue aggressively. MR. ADLER: I mean it strikes me for the World Bank, you’re in an interesting position on global warming because there are some things one can do for people that would not be favorable for the global warming side. And in the past the World Bank has for example promoted coal-based projects in countries that didn’t have enough electricity. That would not seem to be good for the environment. On that sort of trade-off, where would you come out on kind of the coal trade-off? And you’ll probably go to the subject of clean coal, so do you really think there’s such a thing as clean coal? DR. KIM: Let me put it this way. I have two seemingly impossible things to reconcile. But in fact I think that they’re reconcilable in a lot of different ways. On the one hand, we’ve got to fight climate change. But we know that the vast, vast majority of the climate pollutants certainly historically but even today are coming from the United States, Europe and China. Those are the three main sources of carbon. We have got to make progress there. That’s really where most of it happens. And then we’ve got this other issue which is very real to us, is that people need energy to grow in order to grow. So let me give you an example. The great Ellen Johnson Sirleaf who was also at the G8 meeting, she became President in a country that had been in war for decades. And so now they’ve had 10 years of peace. But they have a total of 21 megawatts of installed electrical capacity. That’s nothing, that’s like a couple of city blocks in London. And so when I met with her and every time I speak to her she says to me, I need energy and I need energy so that we can get private sector investment so that I can create jobs. She said to me, I have 39 year old men who’ve done nothing but be soldiers their entire life, they need jobs or they’re going to pick up their guns again. So this is very real for her. And so in Liberia, I’ve got to figure out a way of quickly providing her the energy she needs to keep her people living, to attract the kind of private sector investment that will create jobs that will keep people living and not fighting in the jungle. She needs electricity for hospitals, for schools. This is very fundamental. So I’ve got to weigh those two all the time. And, you know, there some– we know that there are coal-burning plants that are incredibly dirty, and we know we can make them cleaner. It's never going to be as clean as solar or wind, but we know for sure we can make them cleaner. So if I have an opportunity to go into a setting and turn an extremely dirty coal-burning plant into one that's cleaner in a country that's extremely poor and needs the energy, I'm going to try everything I can to avoid investing in coal. We know that's the dirtiest form of energy. I'll do everything I can not to invest in it, but I can't look Ellen Johnson certainly from the eye and say because the West has been polluting and China has been polluting for so long, you're going to have to wait. You're going to have to tell your people that they're not going to have jobs, that they're not going to have electricity for the hospitals, they're not going to have electricity for the schools. I can't do that so I've got to figure out a way in every single case to balance those two too. MR. ADLER: So let's turn away from this for a moment, from global warming, and talk about a few other things. One of the things the World Bank does is it estimates growth both in the world generally and in developing markets. And the latest report showed growth in developing markets I think at 5.1% in 2013, going up to 5.7% in 2015. Is that good enough, and what do you see as the main threats to growth going forward, particularly take a look at the potential elimination of quantitative easing in the US and maybe what Japan is doing? DR. KIM: One of the things before – I'd be happy to go there, one of the things that I'd say and in every single G-20 finance ministers meeting, I've made the point that climate change is a short-term, medium-term risk to the global economy. And, you know, people still think it's about their grandkids. It's really not. It's right in front of us. So let me put that on the table first. It's a real threat. You know, the developing countries, let me just give you an example. I was at the Tokyo International Conference on African Development. It's a wonderful meeting where there were I think 50 heads of state from Africa. And the Japanese people have been extraordinarily generous over the years to Africa, so it was wonderful to see them all get together. And as I was walking in, I was talking with my Vice President for Africa Makhtar Diop who was the Former Finance Minister of Senegal, and he said, you know today, as opposed to five years ago – these meetings happen every five years – what a different story. Five years ago in 2008, the African heads of state walk into that meeting and people were thinking, what on earth is going to happen to Africa now that the economic crisis looks so bad right now? What on earth is going to happen then? What happened then was over 5% growth throughout that period of time. And now they're walking into this meeting confident. Not a single African country's in hyper inflation. They have done so many things right. They in fact walked in saying look, you know, we have more fiscal space than just about any other– we've created that fiscal space. We weathered the downturn very well. We took these difficult measures in terms of fiscal consolidation years ago. We got the macroeconomics right. And now, what we want most is investment. It was really incredible. And so I think that’s one of the things that now we have to worry most about. What the African leaders are saying is, in this age of very low interest rates, why is it so difficult to get access to long-term capital for infrastructure? The BRICS countries are talking about a BRICS bank. Of course I meet with them all the time. And what they tell me is, look, we have $4.5 trillion of necessary infrastructure that we have to build in the next five years. And even for us in these low interest rate times, we're having trouble finding long-term capital. So it's not a surprise if they're talking about a BRICS bank. $4.5 trillion, and in the amount of capital out there in the world that's so small. So that's the real concern, that as quantitative easing slows down – and another real concern is if there was a sudden stop to quantitative easing, the developing countries are really worried about access to capital. So that’s one of the things we're working on. There's a huge infrastructure need, and we've got to begin to meet it. So we're working on developing something we're calling the global infrastructure facility, where we're not only putting our own money into infrastructure but we're trying to illustrate for investors – I mean again in Tokyo, there's $1.3 trillion sitting on the sideline, earning very low interest rates. And so I went around trying to say look, Africa's a great investment. We've increased our own investment in Africa ten-fold in the last 10 years. And there's a very, very good return to be made. Moreover, what I tell the investors in Tokyo, was that you can have the most wonderful double bottom line, you can make a good return on your investment and you can also provide electricity for people who desperately need it. To go back to the Ellen Johnson story, not only does she only have 21 megawatts of installed capacity, she pays 54 cents a kilowatt hour which is five times what they pay here in London, five times. So what these investors could do is make a good return off of investing in energy and, at the same time, increase access and reduce the price of electricity in places like Liberia. But, you know, the Japanese investors were saying, we don't know. Africa's so far away. One journalist, the top financial journalist in Japan asked me a question, saying, Dr. Kim, how can you ask us to invest in Africa after what happened in Algeria? The Japanese were involved in the incident in Algeria. They lost lives. And I said, you know, Africa's not a country. It's a continent. And there are huge difference between Algeria and other parts of Africa. I said there are even differences in the investment climate between Northern Mali and Southern Mali. And one of the things that we have to do a better job of doing at the World Bank is to say, look, we think that official development in systems is really important, but it's $125 billion a year, Steve. And I just told you the numbers, $4.5 trillion over five years, so $1 trillion a year almost just in the BRICS countries in infrastructure need. $125 billion a year is not going to touch it. Now, ODA is really critical. And what we're trying to do is to make our investments with IDA, our concessional loan lender for the poorest, every time we invest these very precious funds that come from Official Development Assistance, we want it to leverage lots of private sector investment. I mean that's the story for the future. The story for the future is development won't happen unless the developing countries can get to private sector investment. MR. ADLER: You've been talking a lot about Africa, so just to come back to it, there's a lot of talk of Africa rising and even the G-8 report said it was the next emerging continent. On the other hand, enormous issues there with the Islamic radicalism in some places, Nigeria and Mali. You were just in the Congo and you've gone to Rwanda with the UN Secretary General. And, by the way, I think that you said the first time the UN Secretary General and the Head of the World Bank have traveled together? DR. KIM: On a mission anywhere, by the way. MR. ADLER: Interesting. But I think a lot of people are curious about why the World Bank put $1 billion into that war-torn region. And the question is, would it be effective to have that type of aid for infrastructure and health and energy in a place that were fighting is occurring at such a terrible pace? DR. KIM: The Secretary General and I have been talking a lot about the historical missions of these two institutions, the United Nations and the Bretton Woods institutions, the so-called international financial institutions. And of the things he said is that, you know, the intention of the founders always was that we would hand in glove, that we would work closely together. But, you know, there's a great African saying, when the elephants fight, the grass suffers. I've been the grass most of my life in these countries, working in the village level, in the slums. And I have watched for years as these organizations have fought each other, and I kept thinking, why on earth would you do that? And so we just made a commitment that we were going to, at least from the top, we were going to send a message that we want these institutions to work together like they've always been meant to work together. And so I invited the Secretary General to come to one of our annual spring meetings. And he kept saying, he said you know, everywhere I go where there's conflict, the issue is not peace treaties. The issue is development, that if people have jobs, they will not resort to the only thing that will provide them meals, which is becoming soldiers. So it's an experiment and we hope that it's one that will work out very, very well. I don't think we have any other choice. The idea is that rather than saying, we're not going to go in and work on development projects until there's peace. What we're saying is, we're going to try to leverage peace agreements with development. So we've essentially said that as long as you abide by the peace framework, we're going to go in aggressively and use this $1 billion for really basic things so that – half of it is for energy. One of the big investments is in something that's very exciting, the Rusumo Falls hydroelectric power project which is a run of the river project. In other words, we don't back up water. You use the run of the river to create electricity. And you lose about 20% of the efficiency, but it's a very exciting project. And that area desperately needs energy. It's amazing how little energy's available in that region. And so energy is critical because companies won't come in unless there's energy. I mean right now in Myanmar, we're working like crazy to create more power because Korean and Japanese and Chinese companies want to come in, set up shop, and help. And their governments have told them that they really want development to happen in Myanmar. There's got to be a peace dividend, a democracy dividend there, but they need energy. So we're, our goal in the Great Lakes region is to say go forward with the peace agreement. That's really important. Do everything we can to address the serious social issues. But in the meantime, just burrow forward on the kinds of projects that could truly have a transformative impact. We're going forward believing that one of the ways of preventing conflict is to have development, to have job creation especially for women, especially for young people. That's the goal, we'll see how it works. We're not going to sit back for five years and see how it works. We're actually going forward. We've made a commitment. So we hope that sometime in the fall we'll be able to travel to the Sahel together as well. MR. ADLER: I'm going to ask you one more question before we open it to the floor. We have a lot of financial professionals in the room. People have been asking questions about where to invest, how to invest. And you were in India too recently and you talked about how big the infrastructure needs were and there was no way anybody was going to get that kind of money unless you had private equity and sovereign wealth funds and other private investors. Yet when you talk to investors, they're very concerned in India and many places in emerging markets about corruption, about regulatory requirements that it's just so onerous about unpredictability in terms of rule of law. I mean what do you say to those financial professionals both in terms of going into India and other places in the emerging markets in terms of just how risky are those investments? DR. KIM: The most important thing I would say is please don't paint with too broad a brush. Look specifically at specific industries. And I'll be very blunt about it, we have something called the Asset Management Corporation at our private sector agency, the International Finance Corporation. And at the Asset Management Corporation, we are now working with sovereign wealth funds, we're working with pension funds. And they're putting money into the Asset Management Corporation mostly because over the past 15 years, our internal rate of return has been 20%. Not only have we made money, but we've done it really focusing on development impact. The reason we're able to do so well is, first of all, our borrowing costs are very low, I mean we have a very strong AAA rating, but also because we're able to hedge our risk over the entire world. We invest in a lot of things over the world and we're even investing in the so-called fragile and conflict-affected states. But the most important thing is that most private equity firms don't have the people to be able to go into a place like the Great Lakes region and realistically look at risk and reward. We've been doing it since 1955, looking at the private sector and saying, in the poorest countries what are the opportunities for investment? What are the investments that we feel secure about? Also, we have another agency called the Multilateral Investment Guarantee Agency that provides political risk insurance. In other words, if your company is nationalized, we'll make good on your investment in that company and we've not had to pay very often because we make it clear to the countries that it's not a good idea to do things like that. I mean, you know, if you can do that, you can do that if you want. But then what happens is that the market will react to you and your borrowing cost will skyrocket and you'll have trouble. We try to help countries think about their path toward development in the modern market economy in a way that makes sense for them and makes sense really for their people as well.  MR. ADLER: Great. Thank you very much. Let me turn it over to the audience. I’d like to first call on Nina Chestney from the world’s largest independent news organization, Reuters, whom may very well have a question. Take the microphone. QUESTION: Hi, I wanted to ask about the UN climate process. You talked about China and the way they’re moving forward the momentum on that, but isn’t it time that the status as a developing country in these talks was perhaps notched up one because they are still a developing country in the eyes of the UN climate deal process. Isn’t it time they became a developed country to move things forward even further given their economic growth and their CO2 emissions output. And also on the UN process, the deal may be signed by 2015 but it won’t come into force until 2020. Many scientists think that is too late to stop the rise of global temperature. Is the UN process kind of redundant given its slow process progress and isn’t it better to look at national efforts and try to make progress that way? Thank you. DR. KIM: Thank you. So, in terms of whether China is a developed or a developing country. You know, there have been a variety of arguments made over the years, but I think what China is saying now which really is different is whatever you want to call us, we feel an enormous sense of urgency to tackle this problem. I mean, the goals that they’ve set for reducing their carbon footprint, for reducing short-lived climate pollutants are really, really aggressive. I’m sure you know that when the Chinese government decides to do something they move more quickly and more efficiently than just about any government I’ve ever seen. And so I don’t know their designation is so important. I mean, I think that was part of an argument for a while, we’re a developing country, we should be allowed to pollute. I don’t think that’s what they’re saying now. I think they’re saying something really quite different and in working with them I know that they are really serious. I mean, we actually provide some assistance through the program for market readiness on helping them develop their carbon market. So they are serious as any country that I know in terms of reducing their carbon output. Having said that, it’s still an issue. They’re still building coal plants. It’s not going to be simple but in terms of setting aggressive targets, there’s really, they’ve really surprised many of us. As far as the UN process, again, I talked to the Secretary General a lot about this because this is the top of his list of concerns. I think we have to think of it this way: I think that there’s no question that we still have to support the negotiation process. We’ve got to have a global agreement. We’ve got to do it. and for me, the fact that it doesn’t come into effect until 2020 is really quite separate from what we have to do right now. And that’s why we keep talking about, look, don’t sit back and say we can’t do anything because there’s no global agreement. That’s just a lame excuse in the face of what we’re about to hand to our children in terms of the nature of the world that they’ll live in. And so, there are things we can do right now. When I went to China last fall to visit the soon-to-be Premier Li Keqiang, I didn’t sit in the chair for five minutes before he asked me. I want you to do a major report on urbanization. And we know that China is, they are just hundreds of millions of people going to move into the cities over the next decades. And so, he said we know we can build cleaner cities and we want you to write a report telling us everything that people have done all over the world. In fact, even telling us things we’ve been doing in China that we don’t even know about so that we can scale it up, right? So the notion that we would be able to deliver this report about building clean cities and China would sit and say, okay, everyone do this, and to see it unfold in front of us is really quite exciting. So what they’re saying and what everyone needs to say is please don’t use the lack of a global agreement as an excuse not to take the very clear actions we can take right now to build a cleaner planet. MR. ADLER: Thank you. Other questions? Up front here. QUESTION: I’m Monique Villa from the Thomson Reuters Foundation. And I have a question because it’s very good to see your interest to invest in Africa, in many countries, in India etc., which is really good. And the World Bank in 10 years has made a lot of efforts in investigating corruption regarding the loans that you make and investment you make. Are you satisfied with the results or do you think you should reinforce that? DR. KIM: So it was one of my predecessors, my good friend Jim Wolfensohn, who first uttered the “c” word as he says. And he gave a famous speech in 1996 called “The Cancer of Corruption”. And ever since that time, and especially under Bob Zoellick, my immediate predecessor, the World Bank has made fighting corruption a top, top issue. So last July 2, my first day on the job, I walked in the door, they took me upstairs and I said, okay, you have to make a decision, are you going to cancel the Padma Bridge Project in Bangladesh or not? So I sat down and I looked at the evidence and there was clearly evidence that there was corruption going on, so we cancelled it, my first day on the job. And we continue to do that, but the other thing is that we continue to work in places where we know there’s corruption, Afghanistan for instance, we put billions of Dollars into Afghanistan and we will continue to work in Afghanistan even though that all around us we know that there’s corruption going on. How do we fight corruption? Well, we own something like 20 armored vehicles and I rode in one of them when I visited and they’re level 4 which means that they can withstand an IED, but they can’t withstand missiles, so more details than I needed to know at that time, but I was very proud of our team because they get in those vehicles and they ride out into the country side and they check whether the money is going to where it’s supposed to be going. And we’ve even set up a system in Afghanistan where citizens can go and look at the projects and take pictures to make sure that things are actually happening and they transmit the pictures back to the World Bank office to know that the money’s actually going where it’s supposed to be going. And the really cool thing is that we’ve given them a feature because there are checkpoints, informal checkpoints that are set up so that if they take their phone and push one button, it erases all the pictures, because we know that there will be people trying to stop them from doing this kind of work. We’re very comfortable that we’re tackling corruption effectively. And every time we see, we call it, and we’ll do things like cancelling important projects. But has that stopped corruption everywhere? No, of course not, and it has not. But what we’re hoping is that by us being more and more rigorous, we are setting a standard, all the other multilateral development banks have same standard and we hope that that will spread to the government, but just take the example of Afghanistan. What are we going to say? In 2000, there were 250,000 kids in school, zero girls in school, now there are 10 million kids in school, 40% are girls. And we are at risk of going right back to the 2000 scenario unless we’re there especially providing health education and social protection. They need jobs. The combatants need jobs and so we’re working right now to try to develop the private sector in Afghanistan, so you can’t sit back and say, well, we’re not going to work in any country where there’s a trace of corruption because there are still poor people there, right? And so, we’ll continue to work. We’ll continue to follow the money. We’ll still continue to buy the armored cars, but it’s just a reality of the world that we live in and we hope that by us continuing to be tough on it, that we can help countries move in a better direction.  MR. ADLER: Let’s take some more questions on the aisle in the middle here. QUESTION: Hi, I’m Laurie Goering, also at the Thomson Reuters Foundation. We’re very interested in this. I’m curious about China. You say is that right of course, that China is really serious about this in doing a lot and aiming to do more, but at the same time, what you see is that it’s the rate in growth in emissions that’s falling, not the rate of the emissions. How does this all begin to add up to something that actually works? What is it going to take for the emissions to fall, not just to slow the rate at which we’re getting to 4 degrees or higher? DR. KIM: Yeah. It’s a great question and it’s the question that we’re all asking. But the rate of growth of the country as a whole is just so fast that they’re trying to keep up, right? And I truly do think that we’ve not yet made the most of all the technologies that are possible, meaning have they done as much they can  in terms of really truly building clean cities, because that’s where the vast majority of people are going to live, if they can really make an impact on building clean cities, probably natural gas will be transitional fuel that they’ll have to use, but they have, they’re investing more in solar, in wind, in other forms of energy really than almost any other country. So I think what you’re going to see is over time a gradual shift to renewables, a way of building cities that are clean, more efficient buildings. All those things together we think will add up to an eventual drop. I know that the Chinese government is committed to this, I mean, compared to the other large emitters, their announcements recently had been the most aggressive, had been the most aspirational, so my role right now is to run like crazy to try to continue to help them think about specifically and in terms of the implementation, how they’re going to do it. So right now, that’s why we’re working so much on cities. It’s such a big issue for them, they’re putting into place their carbon output structure for the next generations in the way they build their cities. So we’re desperately trying to catch up, the Chinese are really interested in climate smartagriculture, they’re already doing some of it. We think that they can make a lot of progress, and of course in the area of renewables, this is really important. The fact that China is being so aggressive about their own carbon market is a really, really encouraging sign for the possibility of a global agreement. Look, if we can get Europe, the United States and China to agree on a price of carbon, it’s so much better for us because at that point, investments will turn to low carbon investments and we’ll finally, we’ll have market mechanisms working to help us battle climate change. And that’s going to be the ultimate answer is that when market mechanisms are clear, and most companies have already built the price of carbon into their future projections. They’re expecting it, so we just need to get about coming up with the political solution as quickly as we possibly can. I hope that the practical solution to the carbon market will happen long before 2020. That’s what we’re going to keep pushing and we’re going to try to make it clear that this is both possible and the right thing to do. Let me just say one other thing. I think part of it too is that we’ve not as a community not been bold enough. I think what happens with extreme weather events is something crazy happens and then the public turns to climate scientists and say, uh-oh, now what? And we’ve always been providing small bore answers, well, things like put a solar panel on your roof, and shower less, and I think what people think is that they think, oh, I see, so you’re really not serious about this yet. What we have to do is put together a plan that is equal to the challenge of climate change and we haven’t done that yet. We’re working on doing it, but once the public, because as these extreme weather events continue to happen, I think public opinion is going to change, just like it has in China. I think it’s going to change throughout the world. And then at that point, the challenge will be on us to have a real plan that’s equivalent to the challenge. MR. ADLER: So to make sure our guests get a chance, could I just see non-Thomson Reuters hands for a minute? Okay, up here, second row.  QUESTION: Still a journalist, I’m afraid. Geoffrey Lean of the Daily Telegraph. Thanks very much. That’s been very refreshing and particularly refreshing to hear your emphasis on short-lived policies which don’t often get the attention they deserve. But coming into that and coming into China, there’s recent agreement between Obama and CE about reducing, well, phasing out the HFC’s. It seems to me perhaps the biggest step for we’ve yet taken including here too, is the future - and given the difficulty, given you say about 2020, given the difficulty of getting everything to the US Congress, even if as agreement is made - is the future more in these kind of bilateral agreements? At least initially. I don't feel that - to anyone the importance of global agreements, having suffered through 23 years of negotiations of them. I don't have great hopes that it will happen very soon. DR. KIM: Well, I think we have to encourage any kind of agreement that anyone will come to and I think that's my point today. Let me say again, the work that the Secretary-General is doing on reaching a global agreement is just critical. We cannot- I mean, people were traumatized by Copenhagen, we know that. That was a really difficult meeting but still, a global agreement is critical. But in the meantime, whatever we can do should be welcomed and I think that I was very encouraged by the agreement as well. But the thing that is most encouraging to me is that I know from talking with President Obama's people working on this issue and from talking with Secretary John Kerry, that the level of seriousness in the United States at the top in tackling this issue just couldn't be higher. And I really think, as the extreme weather events occur in the Midwest of the United States and as these Hurricane Sandy's, we begin to understand the implications that the other legislators will come around. And I don't know how long it will take but I hope it's not too long. And in China, again, the discourse, the public discourse has fundamentally shifted in China. So, these first steps are really important. Every time we see them, they should be encouraged. Whatever agreement we can come to should be encouraged but in the meantime, I don't think we should give up on the global agreements. We have to keep pushing in trying to reach some kind of agreement.  MR. ADLER: Mark Jones is channeling questions from our Thomson Reuters Global Markets Forum and I think, probably some of our guests have questions on there. MR. JONES: Yes, a couple of questions. Picking up on some themes from quite a large number of questions on Twitter with the #askWorldBank. So I'll give you both of them. First one is about getting youth involved. So, Codrin Paveliuc from Belgium says there's quite a lot of discussion about getting youth involved but when will we actually see some of this happening and the World Bank's role in that? And second one is from Wanda, who echoes another theme running through the questions, which is, \"How do you answer critics of energy efficiency goals who claim it will hurt the economy to implement higher standards?\" And she has in mind in particular, the United States. DR. KIM: So on the first one, I would just encourage all young people to look at our Connect4Climate work where we're specifically trying to engage young people and being creative about it. But I have to say, this effort to combat climate change doesn't yet look like a movement. And I have been extremely fortunate to participate in some movements. The battle against HIV was a movement. And so one of the things I keep asking my friends in the environmental world is, where is the plan and where is the movement? And they say, \"What do you mean?\" I say, \"Well look at HIV.\" We discovered the patients, not even the virus in 1981. By 1996, we had treatment that really gave people, turn it into a chronic disease. And that was not easy. There was a one group of activists, the people from ACT UP, who went into the National Institutes of Health in the United States, threw blood on people until they put billions of Dollars into HIV research. There are another group that changed the rules of the Food and Drug Administration to get drugs to a fast track. They did everything you needed to do in the value chain, if you let me borrow a business term, to get to where they wanted to go. And I keep asking, where is the plan for that? And we don't have it yet. There's not enough research, there's not enough technology being passed on to the private sector. We don't have the pieces in place. And so it doesn't feel like a movement. Young people got involved in the HIV movement because it felt like a movement and they wanted to be part of something that powerful and exciting. We need that. And we probably need the young people to lead on it. We need the young people to say, \"Come on, old folks, you know, you may be gone by the time this hits, but our world is going to be awful and we're going to prevent that.\" But it hasn't happened yet. And in terms of the second question, look, a lot of people say it's not possible to have green growth; that you either have green or you have growth. Look, we have no choice. And I just, we're saying it now but 2030 is not that far away. In 2030, my youngest son will be graduating from college, right. And if there's a two degree Celsius world when he's graduating from college, I just- it scares me and so what it tells me is, we have just got to find the way to have growth that's green. And I'm convinced, looking at all the data on the potential of new technology, looking at the potential of things like hydroelectric power, of geothermal power, of micro-grids using solar and wind energy, I think that there is no question that it's possible and if we devote our energy and our ingenuity to making it possible in all over the world, I think that in a great sense will help us determine who the winners and losers are going to be. I think the winners are going to be those who are able to grow their economies while also reducing their carbon footprints. I mean, Germany's done that and it's very impressive the way Germany has uncoupled growth from their carbon footprint. Germany's done it, they've made a big commitment and that's where I'm going later this evening, partly to celebrate their commitment to doing that. Every country in the world has to move in that direction. MR. ADLER: I think we have time for one quick question and one quick answer. All the way in the back there. QUESTION: David Harris from FTSE, the index company. I mean, leading on from what you were just saying, you've spelt out a very kind of passionate image of the transition to a low carbon economy, the growth of kind of new emerging cleaner industries of the future. For that transition to take place, will obviously require a redeployment of capital from institutional investors. And what do you see as the barriers for institutional investors making that kind of switch and how do you see us trying to overcome those barriers? DR. KIM: I think the fundamental issue is that institutional investors are- it's hard for them to get their head around the fact that there are people who understand the nature of risk and reward in countries like Rwanda, that we just mentioned, as well as they understand the nature of risk and reward around investing in information technology, for example. They just can't imagine that we at the World Bank or the IFC especially, and at MIGA- can you imagine, we provide- just to give you an example of how much we understand it, there's a phenomenon in Rwanda where there are lakes and under, in the bottom of the lakes there's methane; and that methane sometimes explodes. So it's a huge hazard. But at the same time, you can actually get that methane out of the ground and use it for energy, right, so that you're killing two birds with one stone. We guarantee a project like that. And that means we understand a lot about the nature of risk and reward around projects that are as seemingly arcane and exotic as that one. I think that's the biggest issue and we have to do a better job and letting institutional investors know that we have looked at risk and reward since 1955 in these countries. And that it's not just that you're going to make a good return, you're going to make a good return and you're going to help countries move on the path towards development. That double bottom line, the notion that Michael Porter talked about is shared value. We have to be better at communicating that but they're skeptical. And they're understandably skeptical and it's only going to really shift as certain investors start making a lot of money and start having really good outcomes in these poor countries. And we're committed to helping investors develop that sense of confidence.  MR. ADLER: Dr. Kim, thank you so much for being here.  DR. KIM: Thank you, Steve. MR. ADLER: You can come back any time. Thank you. DR. KIM: We really had a lot out of it. Thank you. Thanks very much. We just had a great time.  ","content_1000":" MR. SMITH: Good morning. We’re honored to have Dr. Kim as our guest this morning and he comes here directly from attending the G8 meeting in Northern Ireland. This is President Jim Yong Kim’s first major public event in London since he was appointed World Bank Group President last year. This Newsmaker coincides with the release of an important new World Bank report on climate change. There are hard copies of the report outside of the auditorium and memory sticks on all the seats in the auditorium.  Dr. Kim’s made tackling climate change one of his priorities for the World Bank Group and he’s called it a “fundamental threat to economic development and the fight against poverty.” As he nears the end of his first year in office, Kim’s developing a new strategy for the World Bank Group: to be put to the board at the annual meetings in Washington in October of this year. This strategy will be based on two guiding goals for the organization: One, the end of extreme poverty by 2030; and seco","displayconttype":"Speeches and Transcripts","originating_unit":"EXTCC","originating_unit_exact":"EXTCC","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","masterconttype":"Speeches and Transcripts","node_id":"80ee6651c1f8db6d39522cae4e1ed14b48202bca","wn_title":"TRANSCRIPT: Reuters Newsmaker Event with World Bank Group President Jim Yong Kim","wn_desc":" MR. SMITH: Good morning. We’re honored to have Dr. Kim as our guest this morning and he comes here directly from attending the G8 meeting in Northern Ireland. This is President Jim Yong Kim’s first major public event in London since he was appointed World Bank Group President last year. This Newsmaker coincides with the release of an important new World Bank report on climate change. There are hard copies of the report outside of the auditorium and memory sticks on all the seats in the auditorium.  Dr. Kim’s made tackling climate change one of his priorities for the World Bank Group and he’s called it a “fundamental threat to economic development and the fight against poverty.” As he nears the end of his first year in office, Kim’s developing a new strategy for the World Bank Group: to be put to the board at the annual meetings in Washington in October of this year. This strategy will be based on two guiding goals for the organization: One, the end of extreme poverty by 2030; and secondly, ensuring shared prosperity by boosting the incomes of the bottom 40% of the population in each country.  We're pleased to have him with us here today and we’re pleased to be at the center of the discussion at such an important time in the world. With that, I’ll turn it over to Dr. Kim. DR. KIM: Thank you very much. It’s great to be here and I’d just - to begin with, let me apologize, I’m fighting a bit of a cold and so you may have seen me popping – those are throat lozenges, nothing else, I just want to let you know. I’m pleased to be here today to release our new climate change report called “Climate Extremes: Regional Impacts and the Case for Resilience”. Last year, we published a report on the challenges we’d be facing if the global temperature rose to 4 degrees Celsius above pre-industrial levels. As you are aware, 4 degrees Celsius presents us with a world of extremes that must be avoided at all costs. Today for the second report, we asked scientists at the Potsdam Institute for Climate Impact Research and Climate Analytics to prepare a climate forecast for a range of temperatures up to 4 degrees Celsius with a special focus on 2 degrees Celsius. We asked them to drill down for a detailed look at three regions: Sub-Saharan Africa, South Asia and Southeast Asia because climate change will affect regions differently and because a 2-degree Celsius world will disproportionately hurt the poorest.  The conclusions in this report should make all of us lose sleep over what our world will look like in our lifetimes. The conclusions are clear. A world that warms by 2 degrees Celsius, perhaps in just 20 or 30 years will cause vast parts of Africa, African croplands to wither, submerge large swaths of cities in South Asia and kill off much of the fisheries in some parts of Southeast Asia. We must do all that we can to avoid these catastrophes. This report tells us that talking about climate change averages obscures the real dangers ahead. It tells us that the rise of temperatures by a little over 1 degree Celsius on average is not a matter of slightly warmer days. A 1-degree Celsius difference means that the world, for instance, will start processing water much differently which will lead to shortages of water in some places, flooding in other areas as well as more cyclones in still more areas.  Consider these forecasts in the report. In Sub-Saharan Africa by the 2030s, drought and heat will leave 40% of the land now growing maize unable to support the crop any longer. In South Asia, shifting rain patterns will leave some areas underwater and others without enough water for power generation, agriculture or drinking. Sea level rise coupled with more intense tropical cyclones could mean extensive flooding in coastal areas of Bangladesh as well as in cities such as Kolkata and Mumbai. In Southeast Asia, at 2 degrees Celsius, maximum fish catch will decline by 50% in the Southern Philippines. Loss of the coral reefs would diminish tourism, reduce fish stocks, and leave coastal communities more vulnerable to less frequent but increasingly violent storms. Across our regions, the growing movement of impacted communities into urban areas could lead to ever higher numbers of people in slums and other informal settlements being exposed to heat waves, flooding, mudslides and epidemics of disease. This is a 2-degree Celsius world. It’s coming unless world leaders do something about it. At the World Bank Group we’re  doing everything we can to avoid a 2-degree Celsius world in light of these and other findings on climate change, every project that we do now will be informed by analysis that spells out any impact on climate change. We are developing tools that help countries better assess and adapt to climate change, including greenhouse gas emissions tracking, helping countries become more energy-efficient and advising them on building more climate-resilient infrastructure. We’re working with partners on building low-carbon climate-resilient cities, transforming the way we farm to maximize productivity and resilience and doubling global renewable energy and efficiency. And we can’t ignore the financing challenge. The world needs to find innovative ways to set an appropriate price on carbon and roll back fossil fuel subsidies. If we can get prices right, we can redirect finance to low carbon growth, lessen the chances of a 2-degree warming and avoid a 4-degree world.  I hope this report will help convince leaders that the benefits of strong, early action on climate change far outweigh the costs. Our successes and failures in this fight against climate change will, in my view, define our generation. Thank you. MR. ADLER: Well thank you, Dr. Kim. It’s great to have you here. DR. KIM: Thanks, Steve.  MR. ADLER: You all probably know Dr. Kim's extraordinary credentials as a doctor, as an anthropologist, a co-founder of Partners in Health, was recently President of Dartmouth College. You may not know that he was the quarterback – this is important to people who know American football – he was the quarterback of his high school football team in Muscatine, Iowa and he was also point guard on the basketball team. So you immediately know that the leadership skills started very, very early.  DR. KIM: Well don’t be too impressed, our football team lost every game and we had the longest losing streak in the nation, 56 games in a row. So it was a multi-generational losing streak.  MR. ADLER: It was a better introduction if you hadn’t said that. So again, let’s – since you are just back from the G8 and I think everybody was very interested in what happened at the G8, probably the most enduring image from the G8 is that wonderful Reuters photo of Presidents Putin and Obama sitting there which has got to be a textbook study of the meaning of body language because it's quite extraordinary. But one thing that did come out that didn't actually get a lot of publicity was that the G8, in its communiqué, did endorse the signing of a greenhouse gas emissions pact by 2015. How significant is it that the G8 supported it and Russia's going to be very important and that other emerging countries? Do you think we're really heading towards that type of agreement?  DR. KIM: Well I sure hope so, Steve. In the United States, of course, now that you mentioned it, of course President Obama's been very clear especially in his second term that he's going to tackle this problem. John Kerry, the Secretary of State is probably the champion previously in the House and the Senate on tackling climate change. So we have a lot of hope that the United States is stepping forward. It's great that the G8 endorsed a real movement, I think, toward a global agreement. The other country that I think has moved a lot even in six months is China. I mean they have introduced some really aggressive, the Shenzhen trading scheme, carbon trading scheme, they’re really serious about establishing a national carbon market. And in my recent talks with them, they said that this past winter where the pollution was so bad and the figures are coming out, now 1.2 million people died last year as a result of the pollution. I mean these folks - In China. This is the black carbon, the so-called short-lived climate pollutants that have just wreaked havoc in China. And so there’s a new spirit in China. The new government, I think, is really committed to tackling climate change. And so if we can get the European countries, the United States and China to agree to really tackle this issue, that’s the huge bulk of the issue. This is where we really have to make progress.  MR. ADLER: So climate change still remains a controversial topic despite the fact that there have been so many scientific reports like this one. And there was a report in May that came out in Nature Geoscience that's gotten a lot of attention that suggests a slowing of global warming in the last 14 years. And opponents are doing the types of things you support have seized on that and said look, this is not a serious problem as people have said. What’s your read of that report and how significant is it in shaping global opinion on the topic? DR. KIM: The critical thing is that you can’t really look at the last 10 years which that report - it was really a 10-year study. And the key is looking back from pre-industrial times through now and looking at what the trends are. Because of that report, the scientists went back and asked the question, so what did happen? Did it really slow down? What was really the reason for it? And it turns out that much of the carbon was absorbed in the deep ocean. So for example, what we're seeing is that greater acidity when carbon dioxide goes into water, it turns into acid makes the water more acidic. And so that's what has happened. So presumably, the ocean has a carrying capacity. At some point it's going to stop being able to absorb the carbon. And then the thing that we're really worried about is that that might have happened because the carbon was enough to have the water absorb it. And then at some point it's going to stop. And so we could see then a really rapid increase in global temperatures. The point is right now there is 97%, 98% agreement that human-caused global warming is a reality. And so in my view, in medicine, there's almost nothing that I can think of that has 97% or 98% agreement. And so it's, if you disagree with the science of human-caused climate change, you're not disagreeing that there's human-caused- that there's human anthropogenic climate change. What you're disagreeing with is science itself. And as far as I know it's the best we got, that modern science is the best we have. And so I think it's really the time to stop arguing whether it's real or not. The scientists agree and I think the effects that we're seeing today are really quite real. We have to move on to start thinking about what we can do to both mitigate and adapt to climate change.  MR. ADLER: I mean thinking about your report, it's really highly apocalyptic. And my sense is that people don't respond that well to long range apocalyptic predictions. And we face it in business, we face it in everything, the short term versus the long term. So how do you get people to focus on something that appears to be off in the future when they're facing so many immediate problems, the economy's struggling, all the issues we all face. Why should people focus attention or how can we get them to focus attention?  DR. KIM: Part of what we're trying to do in this report is bring attention to it. But in bringing attention to it, the other thing that we want to do is just to give people a sense that there are things we can do right now. We need a global agreement. We need a global carbon market. We need countries all over the world to remove fossil fuel subsidies but those are really hard things to get to politically. In the meantime though, there are so many things we can do and one of the things that we're trying to stress in this report and all of the work we're doing is there's an opportunity right now to move toward renewable energies. There's great new technology. There's an opportunity right now to build cleaner cities. There are cities all over the world that have already made huge strides. For example in New York City, Mayor Bloomberg said we're going to reduce our carbon footprint by 30% by 2030. They're going to get there by 2017. And all the companies and the buildings and the people of New York City have gotten together and moved much more quickly than anyone thought. I was just in Delhi and it's an amazing sight to be behind a bus in Delhi. Now I've been to developing countries all over the world and you just expect black stuff to be coming out of it. Nothing, because the Supreme Court mandated that all buses and even the little puttputt motorcycles have to run in natural gas. So Hong Kong decades ago decided they're going to cut the number of cars in the city of Hong Kong by half in a pretty short period of time. So there's things we can do right now, cleaner cities, renewable energy and climate-smart agriculture is a term that’s thrown a lot these days. But there's tremendously exciting things that are going on in ways of new forms of agriculture, new ways of terracing and protecting the river banks - these kinds of interventions can have a huge impact on preserving the environment and actually putting carbon back into the ground. We have to now get to the stage where we're working everyday to do the small things that we can do right now and then push our leaders to come to these global agreements.  MR. ADLER: So you don't think the small things taken together add up to enough to make a big change. But in part what you're saying is if we see some results locally it might encourage global leaders to take it more seriously? DR. KIM: Let's just take one issue, the so-called short-lived climate pollutants- this is an issue when she was Secretary of State, Hillary Clinton really championed. I mean these have a huge impact and it's the black carbon that has had such an impact. So the black carbon is doing a bunch of things. Right now these are inefficient coal-burning factors that are spewing this black stuff in the air. We can decrease short-lived climate pollutants dramatically in a short period of time. Here's what it's doing. First of all it's getting in people's lungs and killing people. This is what we're seeing in China. But it's also going up into the air and covering the snow-capped peaks of mountains and that by making them darker it absorbs some light and it increases the melting. But if we can take action on those right now, we can actually delay the rise of temperature to two degrees centigrade. So these are not small things. If we can move rapidly to more renewables, if we can build cleaner cities and if we can institute climate-smart agriculture everywhere, we can have a very major impact on global warming and we can do it today and the real point Steve is that this is not a bleak future where nobody's showering and no one has energy. This is a bright future where people do have energy, people are living in economies that are growing but it'll just be a lot cleaner.  MR. ADLER: Okay. Your report goes into so many different risks to growth from global warming. It's a little hard to get your arms around kind of what are the most serious ones. What are you most worried about? Is it water or is it the lack of water, is it too much water? I mean if we can focus on kind of one major problem perhaps in one major place, just illustrate what you're most concerned about.  DR. KIM: Climate scientists say that carbon is the currency of climate change, water is the teeth. We're already seeing struggles and conflicts over access to water. This is what I'm most worried about. The fundamental issue, Stephen, and one I wasn't really aware of before coming into this job is that the earth is fundamentally handling water differently. The jet stream has changed. The El Nino and La Nina effects are changing.  MR. ADLER: Is that why it rains here now all the time? Instead of most of the time? DR. KIM: Well this is one of the recent findings, is that the very wet summers are related to the way that the earth is handling water differently. What some of the climate deniers say is, how can you tie a particular event to climate change. And that's not what we're saying. We're not saying that a particular event and climate change are directly causing and related. What we're saying is that the climate change scientists have predicted that extreme weather events are going to increase in number. And so we are having- I can't- I've lost count of the number of once in a lifetime events that have happened in the last two or three years. Duh, there's something going on here folks. Once in a lifetime events all the time? So this is what the prediction is. And so it's a hard thing because there's not a direct if I do this, this will happen. It's a kind of collective solidarity that we have to exercise on behalf of our children. But it's not just on behalf of our children. Let me just give you an example. By the 2030 or 2040, if we get to two degrees Celsius, Bangkok could be underwater. So if you Steve are planning to retire in Bangkok which is a great place, you’d have to rethink your plans. This is very real. I have a 12-year old, 13-year old son actually just had a birthday, and 4-year old son. And for them, this is real. And I can just see it. My kids already I can see the way they’re going to talk to me. They’re going to say, oh thanks Dad, you were President of the World Bank, what did you do when you knew this was going to happen to us, how could you have given us the world where we know that so many people who don’t have water, where we know- just think about it. 40% of the land today used to grow maize in Africa won’t be able to grow it anymore. This is huge. So the UK government I think very rightly has focused on nutrition. And they focus really I think brilliantly on something called stunting which is kids who are lower height for age, meaning they’re malnutrition has gone on for a long time, chronic malnutrition. This is going to be everywhere. I mean we’re going to have this problem everywhere. And so for us, now that we have set this goal of ending poverty, there is no way we’re going to get there by 2030 unless we begin to tackle this issue aggressively. MR. ADLER: I mean it strikes me for the World Bank, you’re in an interesting position on global warming because there are some things one can do for people that would not be favorable for the global warming side. And in the past the World Bank has for example promoted coal-based projects in countries that didn’t have enough electricity. That would not seem to be good for the environment. On that sort of trade-off, where would you come out on kind of the coal trade-off? And you’ll probably go to the subject of clean coal, so do you really think there’s such a thing as clean coal? DR. KIM: Let me put it this way. I have two seemingly impossible things to reconcile. But in fact I think that they’re reconcilable in a lot of different ways. On the one hand, we’ve got to fight climate change. But we know that the vast, vast majority of the climate pollutants certainly historically but even today are coming from the United States, Europe and China. Those are the three main sources of carbon. We have got to make progress there. That’s really where most of it happens. And then we’ve got this other issue which is very real to us, is that people need energy to grow in order to grow. So let me give you an example. The great Ellen Johnson Sirleaf who was also at the G8 meeting, she became President in a country that had been in war for decades. And so now they’ve had 10 years of peace. But they have a total of 21 megawatts of installed electrical capacity. That’s nothing, that’s like a couple of city blocks in London. And so when I met with her and every time I speak to her she says to me, I need energy and I need energy so that we can get private sector investment so that I can create jobs. She said to me, I have 39 year old men who’ve done nothing but be soldiers their entire life, they need jobs or they’re going to pick up their guns again. So this is very real for her. And so in Liberia, I’ve got to figure out a way of quickly providing her the energy she needs to keep her people living, to attract the kind of private sector investment that will create jobs that will keep people living and not fighting in the jungle. She needs electricity for hospitals, for schools. This is very fundamental. So I’ve got to weigh those two all the time. And, you know, there some– we know that there are coal-burning plants that are incredibly dirty, and we know we can make them cleaner. It's never going to be as clean as solar or wind, but we know for sure we can make them cleaner. So if I have an opportunity to go into a setting and turn an extremely dirty coal-burning plant into one that's cleaner in a country that's extremely poor and needs the energy, I'm going to try everything I can to avoid investing in coal. We know that's the dirtiest form of energy. I'll do everything I can not to invest in it, but I can't look Ellen Johnson certainly from the eye and say because the West has been polluting and China has been polluting for so long, you're going to have to wait. You're going to have to tell your people that they're not going to have jobs, that they're not going to have electricity for the hospitals, they're not going to have electricity for the schools. I can't do that so I've got to figure out a way in every single case to balance those two too. MR. ADLER: So let's turn away from this for a moment, from global warming, and talk about a few other things. One of the things the World Bank does is it estimates growth both in the world generally and in developing markets. And the latest report showed growth in developing markets I think at 5.1% in 2013, going up to 5.7% in 2015. Is that good enough, and what do you see as the main threats to growth going forward, particularly take a look at the potential elimination of quantitative easing in the US and maybe what Japan is doing? DR. KIM: One of the things before – I'd be happy to go there, one of the things that I'd say and in every single G-20 finance ministers meeting, I've made the point that climate change is a short-term, medium-term risk to the global economy. And, you know, people still think it's about their grandkids. It's really not. It's right in front of us. So let me put that on the table first. It's a real threat. You know, the developing countries, let me just give you an example. I was at the Tokyo International Conference on African Development. It's a wonderful meeting where there were I think 50 heads of state from Africa. And the Japanese people have been extraordinarily generous over the years to Africa, so it was wonderful to see them all get together. And as I was walking in, I was talking with my Vice President for Africa Makhtar Diop who was the Former Finance Minister of Senegal, and he said, you know today, as opposed to five years ago – these meetings happen every five years – what a different story. Five years ago in 2008, the African heads of state walk into that meeting and people were thinking, what on earth is going to happen to Africa now that the economic crisis looks so bad right now? What on earth is going to happen then? What happened then was over 5% growth throughout that period of time. And now they're walking into this meeting confident. Not a single African country's in hyper inflation. They have done so many things right. They in fact walked in saying look, you know, we have more fiscal space than just about any other– we've created that fiscal space. We weathered the downturn very well. We took these difficult measures in terms of fiscal consolidation years ago. We got the macroeconomics right. And now, what we want most is investment. It was really incredible. And so I think that’s one of the things that now we have to worry most about. What the African leaders are saying is, in this age of very low interest rates, why is it so difficult to get access to long-term capital for infrastructure? The BRICS countries are talking about a BRICS bank. Of course I meet with them all the time. And what they tell me is, look, we have $4.5 trillion of necessary infrastructure that we have to build in the next five years. And even for us in these low interest rate times, we're having trouble finding long-term capital. So it's not a surprise if they're talking about a BRICS bank. $4.5 trillion, and in the amount of capital out there in the world that's so small. So that's the real concern, that as quantitative easing slows down – and another real concern is if there was a sudden stop to quantitative easing, the developing countries are really worried about access to capital. So that’s one of the things we're working on. There's a huge infrastructure need, and we've got to begin to meet it. So we're working on developing something we're calling the global infrastructure facility, where we're not only putting our own money into infrastructure but we're trying to illustrate for investors – I mean again in Tokyo, there's $1.3 trillion sitting on the sideline, earning very low interest rates. And so I went around trying to say look, Africa's a great investment. We've increased our own investment in Africa ten-fold in the last 10 years. And there's a very, very good return to be made. Moreover, what I tell the investors in Tokyo, was that you can have the most wonderful double bottom line, you can make a good return on your investment and you can also provide electricity for people who desperately need it. To go back to the Ellen Johnson story, not only does she only have 21 megawatts of installed capacity, she pays 54 cents a kilowatt hour which is five times what they pay here in London, five times. So what these investors could do is make a good return off of investing in energy and, at the same time, increase access and reduce the price of electricity in places like Liberia. But, you know, the Japanese investors were saying, we don't know. Africa's so far away. One journalist, the top financial journalist in Japan asked me a question, saying, Dr. Kim, how can you ask us to invest in Africa after what happened in Algeria? The Japanese were involved in the incident in Algeria. They lost lives. And I said, you know, Africa's not a country. It's a continent. And there are huge difference between Algeria and other parts of Africa. I said there are even differences in the investment climate between Northern Mali and Southern Mali. And one of the things that we have to do a better job of doing at the World Bank is to say, look, we think that official development in systems is really important, but it's $125 billion a year, Steve. And I just told you the numbers, $4.5 trillion over five years, so $1 trillion a year almost just in the BRICS countries in infrastructure need. $125 billion a year is not going to touch it. Now, ODA is really critical. And what we're trying to do is to make our investments with IDA, our concessional loan lender for the poorest, every time we invest these very precious funds that come from Official Development Assistance, we want it to leverage lots of private sector investment. I mean that's the story for the future. The story for the future is development won't happen unless the developing countries can get to private sector investment. MR. ADLER: You've been talking a lot about Africa, so just to come back to it, there's a lot of talk of Africa rising and even the G-8 report said it was the next emerging continent. On the other hand, enormous issues there with the Islamic radicalism in some places, Nigeria and Mali. You were just in the Congo and you've gone to Rwanda with the UN Secretary General. And, by the way, I think that you said the first time the UN Secretary General and the Head of the World Bank have traveled together? DR. KIM: On a mission anywhere, by the way. MR. ADLER: Interesting. But I think a lot of people are curious about why the World Bank put $1 billion into that war-torn region. And the question is, would it be effective to have that type of aid for infrastructure and health and energy in a place that were fighting is occurring at such a terrible pace? DR. KIM: The Secretary General and I have been talking a lot about the historical missions of these two institutions, the United Nations and the Bretton Woods institutions, the so-called international financial institutions. And of the things he said is that, you know, the intention of the founders always was that we would hand in glove, that we would work closely together. But, you know, there's a great African saying, when the elephants fight, the grass suffers. I've been the grass most of my life in these countries, working in the village level, in the slums. And I have watched for years as these organizations have fought each other, and I kept thinking, why on earth would you do that? And so we just made a commitment that we were going to, at least from the top, we were going to send a message that we want these institutions to work together like they've always been meant to work together. And so I invited the Secretary General to come to one of our annual spring meetings. And he kept saying, he said you know, everywhere I go where there's conflict, the issue is not peace treaties. The issue is development, that if people have jobs, they will not resort to the only thing that will provide them meals, which is becoming soldiers. So it's an experiment and we hope that it's one that will work out very, very well. I don't think we have any other choice. The idea is that rather than saying, we're not going to go in and work on development projects until there's peace. What we're saying is, we're going to try to leverage peace agreements with development. So we've essentially said that as long as you abide by the peace framework, we're going to go in aggressively and use this $1 billion for really basic things so that – half of it is for energy. One of the big investments is in something that's very exciting, the Rusumo Falls hydroelectric power project which is a run of the river project. In other words, we don't back up water. You use the run of the river to create electricity. And you lose about 20% of the efficiency, but it's a very exciting project. And that area desperately needs energy. It's amazing how little energy's available in that region. And so energy is critical because companies won't come in unless there's energy. I mean right now in Myanmar, we're working like crazy to create more power because Korean and Japanese and Chinese companies want to come in, set up shop, and help. And their governments have told them that they really want development to happen in Myanmar. There's got to be a peace dividend, a democracy dividend there, but they need energy. So we're, our goal in the Great Lakes region is to say go forward with the peace agreement. That's really important. Do everything we can to address the serious social issues. But in the meantime, just burrow forward on the kinds of projects that could truly have a transformative impact. We're going forward believing that one of the ways of preventing conflict is to have development, to have job creation especially for women, especially for young people. That's the goal, we'll see how it works. We're not going to sit back for five years and see how it works. We're actually going forward. We've made a commitment. So we hope that sometime in the fall we'll be able to travel to the Sahel together as well. MR. ADLER: I'm going to ask you one more question before we open it to the floor. We have a lot of financial professionals in the room. People have been asking questions about where to invest, how to invest. And you were in India too recently and you talked about how big the infrastructure needs were and there was no way anybody was going to get that kind of money unless you had private equity and sovereign wealth funds and other private investors. Yet when you talk to investors, they're very concerned in India and many places in emerging markets about corruption, about regulatory requirements that it's just so onerous about unpredictability in terms of rule of law. I mean what do you say to those financial professionals both in terms of going into India and other places in the emerging markets in terms of just how risky are those investments? DR. KIM: The most important thing I would say is please don't paint with too broad a brush. Look specifically at specific industries. And I'll be very blunt about it, we have something called the Asset Management Corporation at our private sector agency, the International Finance Corporation. And at the Asset Management Corporation, we are now working with sovereign wealth funds, we're working with pension funds. And they're putting money into the Asset Management Corporation mostly because over the past 15 years, our internal rate of return has been 20%. Not only have we made money, but we've done it really focusing on development impact. The reason we're able to do so well is, first of all, our borrowing costs are very low, I mean we have a very strong AAA rating, but also because we're able to hedge our risk over the entire world. We invest in a lot of things over the world and we're even investing in the so-called fragile and conflict-affected states. But the most important thing is that most private equity firms don't have the people to be able to go into a place like the Great Lakes region and realistically look at risk and reward. We've been doing it since 1955, looking at the private sector and saying, in the poorest countries what are the opportunities for investment? What are the investments that we feel secure about? Also, we have another agency called the Multilateral Investment Guarantee Agency that provides political risk insurance. In other words, if your company is nationalized, we'll make good on your investment in that company and we've not had to pay very often because we make it clear to the countries that it's not a good idea to do things like that. I mean, you know, if you can do that, you can do that if you want. But then what happens is that the market will react to you and your borrowing cost will skyrocket and you'll have trouble. We try to help countries think about their path toward development in the modern market economy in a way that makes sense for them and makes sense really for their people as well.  MR. ADLER: Great. Thank you very much. Let me turn it over to the audience. I’d like to first call on Nina Chestney from the world’s largest independent news organization, Reuters, whom may very well have a question. Take the microphone. QUESTION: Hi, I wanted to ask about the UN climate process. You talked about China and the way they’re moving forward the momentum on that, but isn’t it time that the status as a developing country in these talks was perhaps notched up one because they are still a developing country in the eyes of the UN climate deal process. Isn’t it time they became a developed country to move things forward even further given their economic growth and their CO2 emissions output. And also on the UN process, the deal may be signed by 2015 but it won’t come into force until 2020. Many scientists think that is too late to stop the rise of global temperature. Is the UN process kind of redundant given its slow process progress and isn’t it better to look at national efforts and try to make progress that way? Thank you. DR. KIM: Thank you. So, in terms of whether China is a developed or a developing country. You know, there have been a variety of arguments made over the years, but I think what China is saying now which really is different is whatever you want to call us, we feel an enormous sense of urgency to tackle this problem. I mean, the goals that they’ve set for reducing their carbon footprint, for reducing short-lived climate pollutants are really, really aggressive. I’m sure you know that when the Chinese government decides to do something they move more quickly and more efficiently than just about any government I’ve ever seen. And so I don’t know their designation is so important. I mean, I think that was part of an argument for a while, we’re a developing country, we should be allowed to pollute. I don’t think that’s what they’re saying now. I think they’re saying something really quite different and in working with them I know that they are really serious. I mean, we actually provide some assistance through the program for market readiness on helping them develop their carbon market. So they are serious as any country that I know in terms of reducing their carbon output. Having said that, it’s still an issue. They’re still building coal plants. It’s not going to be simple but in terms of setting aggressive targets, there’s really, they’ve really surprised many of us. As far as the UN process, again, I talked to the Secretary General a lot about this because this is the top of his list of concerns. I think we have to think of it this way: I think that there’s no question that we still have to support the negotiation process. We’ve got to have a global agreement. We’ve got to do it. and for me, the fact that it doesn’t come into effect until 2020 is really quite separate from what we have to do right now. And that’s why we keep talking about, look, don’t sit back and say we can’t do anything because there’s no global agreement. That’s just a lame excuse in the face of what we’re about to hand to our children in terms of the nature of the world that they’ll live in. And so, there are things we can do right now. When I went to China last fall to visit the soon-to-be Premier Li Keqiang, I didn’t sit in the chair for five minutes before he asked me. I want you to do a major report on urbanization. And we know that China is, they are just hundreds of millions of people going to move into the cities over the next decades. And so, he said we know we can build cleaner cities and we want you to write a report telling us everything that people have done all over the world. In fact, even telling us things we’ve been doing in China that we don’t even know about so that we can scale it up, right? So the notion that we would be able to deliver this report about building clean cities and China would sit and say, okay, everyone do this, and to see it unfold in front of us is really quite exciting. So what they’re saying and what everyone needs to say is please don’t use the lack of a global agreement as an excuse not to take the very clear actions we can take right now to build a cleaner planet. MR. ADLER: Thank you. Other questions? Up front here. QUESTION: I’m Monique Villa from the Thomson Reuters Foundation. And I have a question because it’s very good to see your interest to invest in Africa, in many countries, in India etc., which is really good. And the World Bank in 10 years has made a lot of efforts in investigating corruption regarding the loans that you make and investment you make. Are you satisfied with the results or do you think you should reinforce that? DR. KIM: So it was one of my predecessors, my good friend Jim Wolfensohn, who first uttered the “c” word as he says. And he gave a famous speech in 1996 called “The Cancer of Corruption”. And ever since that time, and especially under Bob Zoellick, my immediate predecessor, the World Bank has made fighting corruption a top, top issue. So last July 2, my first day on the job, I walked in the door, they took me upstairs and I said, okay, you have to make a decision, are you going to cancel the Padma Bridge Project in Bangladesh or not? So I sat down and I looked at the evidence and there was clearly evidence that there was corruption going on, so we cancelled it, my first day on the job. And we continue to do that, but the other thing is that we continue to work in places where we know there’s corruption, Afghanistan for instance, we put billions of Dollars into Afghanistan and we will continue to work in Afghanistan even though that all around us we know that there’s corruption going on. How do we fight corruption? Well, we own something like 20 armored vehicles and I rode in one of them when I visited and they’re level 4 which means that they can withstand an IED, but they can’t withstand missiles, so more details than I needed to know at that time, but I was very proud of our team because they get in those vehicles and they ride out into the country side and they check whether the money is going to where it’s supposed to be going. And we’ve even set up a system in Afghanistan where citizens can go and look at the projects and take pictures to make sure that things are actually happening and they transmit the pictures back to the World Bank office to know that the money’s actually going where it’s supposed to be going. And the really cool thing is that we’ve given them a feature because there are checkpoints, informal checkpoints that are set up so that if they take their phone and push one button, it erases all the pictures, because we know that there will be people trying to stop them from doing this kind of work. We’re very comfortable that we’re tackling corruption effectively. And every time we see, we call it, and we’ll do things like cancelling important projects. But has that stopped corruption everywhere? No, of course not, and it has not. But what we’re hoping is that by us being more and more rigorous, we are setting a standard, all the other multilateral development banks have same standard and we hope that that will spread to the government, but just take the example of Afghanistan. What are we going to say? In 2000, there were 250,000 kids in school, zero girls in school, now there are 10 million kids in school, 40% are girls. And we are at risk of going right back to the 2000 scenario unless we’re there especially providing health education and social protection. They need jobs. The combatants need jobs and so we’re working right now to try to develop the private sector in Afghanistan, so you can’t sit back and say, well, we’re not going to work in any country where there’s a trace of corruption because there are still poor people there, right? And so, we’ll continue to work. We’ll continue to follow the money. We’ll still continue to buy the armored cars, but it’s just a reality of the world that we live in and we hope that by us continuing to be tough on it, that we can help countries move in a better direction.  MR. ADLER: Let’s take some more questions on the aisle in the middle here. QUESTION: Hi, I’m Laurie Goering, also at the Thomson Reuters Foundation. We’re very interested in this. I’m curious about China. You say is that right of course, that China is really serious about this in doing a lot and aiming to do more, but at the same time, what you see is that it’s the rate in growth in emissions that’s falling, not the rate of the emissions. How does this all begin to add up to something that actually works? What is it going to take for the emissions to fall, not just to slow the rate at which we’re getting to 4 degrees or higher? DR. KIM: Yeah. It’s a great question and it’s the question that we’re all asking. But the rate of growth of the country as a whole is just so fast that they’re trying to keep up, right? And I truly do think that we’ve not yet made the most of all the technologies that are possible, meaning have they done as much they can  in terms of really truly building clean cities, because that’s where the vast majority of people are going to live, if they can really make an impact on building clean cities, probably natural gas will be transitional fuel that they’ll have to use, but they have, they’re investing more in solar, in wind, in other forms of energy really than almost any other country. So I think what you’re going to see is over time a gradual shift to renewables, a way of building cities that are clean, more efficient buildings. All those things together we think will add up to an eventual drop. I know that the Chinese government is committed to this, I mean, compared to the other large emitters, their announcements recently had been the most aggressive, had been the most aspirational, so my role right now is to run like crazy to try to continue to help them think about specifically and in terms of the implementation, how they’re going to do it. So right now, that’s why we’re working so much on cities. It’s such a big issue for them, they’re putting into place their carbon output structure for the next generations in the way they build their cities. So we’re desperately trying to catch up, the Chinese are really interested in climate smartagriculture, they’re already doing some of it. We think that they can make a lot of progress, and of course in the area of renewables, this is really important. The fact that China is being so aggressive about their own carbon market is a really, really encouraging sign for the possibility of a global agreement. Look, if we can get Europe, the United States and China to agree on a price of carbon, it’s so much better for us because at that point, investments will turn to low carbon investments and we’ll finally, we’ll have market mechanisms working to help us battle climate change. And that’s going to be the ultimate answer is that when market mechanisms are clear, and most companies have already built the price of carbon into their future projections. They’re expecting it, so we just need to get about coming up with the political solution as quickly as we possibly can. I hope that the practical solution to the carbon market will happen long before 2020. That’s what we’re going to keep pushing and we’re going to try to make it clear that this is both possible and the right thing to do. Let me just say one other thing. I think part of it too is that we’ve not as a community not been bold enough. I think what happens with extreme weather events is something crazy happens and then the public turns to climate scientists and say, uh-oh, now what? And we’ve always been providing small bore answers, well, things like put a solar panel on your roof, and shower less, and I think what people think is that they think, oh, I see, so you’re really not serious about this yet. What we have to do is put together a plan that is equal to the challenge of climate change and we haven’t done that yet. We’re working on doing it, but once the public, because as these extreme weather events continue to happen, I think public opinion is going to change, just like it has in China. I think it’s going to change throughout the world. And then at that point, the challenge will be on us to have a real plan that’s equivalent to the challenge. MR. ADLER: So to make sure our guests get a chance, could I just see non-Thomson Reuters hands for a minute? Okay, up here, second row.  QUESTION: Still a journalist, I’m afraid. Geoffrey Lean of the Daily Telegraph. Thanks very much. That’s been very refreshing and particularly refreshing to hear your emphasis on short-lived policies which don’t often get the attention they deserve. But coming into that and coming into China, there’s recent agreement between Obama and CE about reducing, well, phasing out the HFC’s. It seems to me perhaps the biggest step for we’ve yet taken including here too, is the future - and given the difficulty, given you say about 2020, given the difficulty of getting everything to the US Congress, even if as agreement is made - is the future more in these kind of bilateral agreements? At least initially. I don't feel that - to anyone the importance of global agreements, having suffered through 23 years of negotiations of them. I don't have great hopes that it will happen very soon. DR. KIM: Well, I think we have to encourage any kind of agreement that anyone will come to and I think that's my point today. Let me say again, the work that the Secretary-General is doing on reaching a global agreement is just critical. We cannot- I mean, people were traumatized by Copenhagen, we know that. That was a really difficult meeting but still, a global agreement is critical. But in the meantime, whatever we can do should be welcomed and I think that I was very encouraged by the agreement as well. But the thing that is most encouraging to me is that I know from talking with President Obama's people working on this issue and from talking with Secretary John Kerry, that the level of seriousness in the United States at the top in tackling this issue just couldn't be higher. And I really think, as the extreme weather events occur in the Midwest of the United States and as these Hurricane Sandy's, we begin to understand the implications that the other legislators will come around. And I don't know how long it will take but I hope it's not too long. And in China, again, the discourse, the public discourse has fundamentally shifted in China. So, these first steps are really important. Every time we see them, they should be encouraged. Whatever agreement we can come to should be encouraged but in the meantime, I don't think we should give up on the global agreements. We have to keep pushing in trying to reach some kind of agreement.  MR. ADLER: Mark Jones is channeling questions from our Thomson Reuters Global Markets Forum and I think, probably some of our guests have questions on there. MR. JONES: Yes, a couple of questions. Picking up on some themes from quite a large number of questions on Twitter with the #askWorldBank. So I'll give you both of them. First one is about getting youth involved. So, Codrin Paveliuc from Belgium says there's quite a lot of discussion about getting youth involved but when will we actually see some of this happening and the World Bank's role in that? And second one is from Wanda, who echoes another theme running through the questions, which is, \"How do you answer critics of energy efficiency goals who claim it will hurt the economy to implement higher standards?\" And she has in mind in particular, the United States. DR. KIM: So on the first one, I would just encourage all young people to look at our Connect4Climate work where we're specifically trying to engage young people and being creative about it. But I have to say, this effort to combat climate change doesn't yet look like a movement. And I have been extremely fortunate to participate in some movements. The battle against HIV was a movement. And so one of the things I keep asking my friends in the environmental world is, where is the plan and where is the movement? And they say, \"What do you mean?\" I say, \"Well look at HIV.\" We discovered the patients, not even the virus in 1981. By 1996, we had treatment that really gave people, turn it into a chronic disease. And that was not easy. There was a one group of activists, the people from ACT UP, who went into the National Institutes of Health in the United States, threw blood on people until they put billions of Dollars into HIV research. There are another group that changed the rules of the Food and Drug Administration to get drugs to a fast track. They did everything you needed to do in the value chain, if you let me borrow a business term, to get to where they wanted to go. And I keep asking, where is the plan for that? And we don't have it yet. There's not enough research, there's not enough technology being passed on to the private sector. We don't have the pieces in place. And so it doesn't feel like a movement. Young people got involved in the HIV movement because it felt like a movement and they wanted to be part of something that powerful and exciting. We need that. And we probably need the young people to lead on it. We need the young people to say, \"Come on, old folks, you know, you may be gone by the time this hits, but our world is going to be awful and we're going to prevent that.\" But it hasn't happened yet. And in terms of the second question, look, a lot of people say it's not possible to have green growth; that you either have green or you have growth. Look, we have no choice. And I just, we're saying it now but 2030 is not that far away. In 2030, my youngest son will be graduating from college, right. And if there's a two degree Celsius world when he's graduating from college, I just- it scares me and so what it tells me is, we have just got to find the way to have growth that's green. And I'm convinced, looking at all the data on the potential of new technology, looking at the potential of things like hydroelectric power, of geothermal power, of micro-grids using solar and wind energy, I think that there is no question that it's possible and if we devote our energy and our ingenuity to making it possible in all over the world, I think that in a great sense will help us determine who the winners and losers are going to be. I think the winners are going to be those who are able to grow their economies while also reducing their carbon footprints. I mean, Germany's done that and it's very impressive the way Germany has uncoupled growth from their carbon footprint. Germany's done it, they've made a big commitment and that's where I'm going later this evening, partly to celebrate their commitment to doing that. Every country in the world has to move in that direction. MR. ADLER: I think we have time for one quick question and one quick answer. All the way in the back there. QUESTION: David Harris from FTSE, the index company. I mean, leading on from what you were just saying, you've spelt out a very kind of passionate image of the transition to a low carbon economy, the growth of kind of new emerging cleaner industries of the future. For that transition to take place, will obviously require a redeployment of capital from institutional investors. And what do you see as the barriers for institutional investors making that kind of switch and how do you see us trying to overcome those barriers? DR. KIM: I think the fundamental issue is that institutional investors are- it's hard for them to get their head around the fact that there are people who understand the nature of risk and reward in countries like Rwanda, that we just mentioned, as well as they understand the nature of risk and reward around investing in information technology, for example. They just can't imagine that we at the World Bank or the IFC especially, and at MIGA- can you imagine, we provide- just to give you an example of how much we understand it, there's a phenomenon in Rwanda where there are lakes and under, in the bottom of the lakes there's methane; and that methane sometimes explodes. So it's a huge hazard. But at the same time, you can actually get that methane out of the ground and use it for energy, right, so that you're killing two birds with one stone. We guarantee a project like that. And that means we understand a lot about the nature of risk and reward around projects that are as seemingly arcane and exotic as that one. I think that's the biggest issue and we have to do a better job and letting institutional investors know that we have looked at risk and reward since 1955 in these countries. And that it's not just that you're going to make a good return, you're going to make a good return and you're going to help countries move on the path towards development. That double bottom line, the notion that Michael Porter talked about is shared value. We have to be better at communicating that but they're skeptical. And they're understandably skeptical and it's only going to really shift as certain investors start making a lot of money and start having really good outcomes in these poor countries. And we're committed to helping investors develop that sense of confidence.  MR. ADLER: Dr. Kim, thank you so much for being here.  DR. KIM: Thank you, Steve. MR. ADLER: You can come back any time. Thank you. DR. KIM: We really had a lot out of it. Thank you. Thanks very much. We just had a great time.  ","master_date":"2013-06-19T13:01:00Z","master_date_srt":"2013-06-19T13:01:00Z","master_recent_date_srt":"2013-06-19T13:01:00Z","master_recent_date":"2013-06-19T13:01:00Z","short_description":"World Bank Group President discussion at the Reuters Newsmaker event in London on June 19, 2013","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","desc":" MR. SMITH: Good morning. We’re honored to have Dr. Kim as our guest this morning and he comes here directly from attending the G8 meeting in Northern Ireland. This is President Jim Yong Kim’s first major public event in London since he was appointed World Bank Group President last year. This Newsmaker coincides with the release of an important new World Bank report on climate change. There are hard copies of the report outside of the auditorium and memory sticks on all the seats in the auditorium.  Dr. Kim’s made tackling climate change one of his priorities for the World Bank Group and he’s called it a “fundamental threat to economic development and the fight against poverty.” As he nears the end of his first year in office, Kim’s developing a new strategy for the World Bank Group: to be put to the board at the annual meetings in Washington in October of this year. This strategy will be based on two guiding goals for the organization: One, the end of extreme poverty by 2030; and secondly, ensuring shared prosperity by boosting the incomes of the bottom 40% of the population in each country.  We're pleased to have him with us here today and we’re pleased to be at the center of the discussion at such an important time in the world. With that, I’ll turn it over to Dr. Kim. DR. KIM: Thank you very much. It’s great to be here and I’d just - to begin with, let me apologize, I’m fighting a bit of a cold and so you may have seen me popping – those are throat lozenges, nothing else, I just want to let you know. I’m pleased to be here today to release our new climate change report called “Climate Extremes: Regional Impacts and the Case for Resilience”. Last year, we published a report on the challenges we’d be facing if the global temperature rose to 4 degrees Celsius above pre-industrial levels. As you are aware, 4 degrees Celsius presents us with a world of extremes that must be avoided at all costs. Today for the second report, we asked scientists at the Potsdam Institute for Climate Impact Research and Climate Analytics to prepare a climate forecast for a range of temperatures up to 4 degrees Celsius with a special focus on 2 degrees Celsius. We asked them to drill down for a detailed look at three regions: Sub-Saharan Africa, South Asia and Southeast Asia because climate change will affect regions differently and because a 2-degree Celsius world will disproportionately hurt the poorest.  The conclusions in this report should make all of us lose sleep over what our world will look like in our lifetimes. The conclusions are clear. A world that warms by 2 degrees Celsius, perhaps in just 20 or 30 years will cause vast parts of Africa, African croplands to wither, submerge large swaths of cities in South Asia and kill off much of the fisheries in some parts of Southeast Asia. We must do all that we can to avoid these catastrophes. This report tells us that talking about climate change averages obscures the real dangers ahead. It tells us that the rise of temperatures by a little over 1 degree Celsius on average is not a matter of slightly warmer days. A 1-degree Celsius difference means that the world, for instance, will start processing water much differently which will lead to shortages of water in some places, flooding in other areas as well as more cyclones in still more areas.  Consider these forecasts in the report. In Sub-Saharan Africa by the 2030s, drought and heat will leave 40% of the land now growing maize unable to support the crop any longer. In South Asia, shifting rain patterns will leave some areas underwater and others without enough water for power generation, agriculture or drinking. Sea level rise coupled with more intense tropical cyclones could mean extensive flooding in coastal areas of Bangladesh as well as in cities such as Kolkata and Mumbai. In Southeast Asia, at 2 degrees Celsius, maximum fish catch will decline by 50% in the Southern Philippines. Loss of the coral reefs would diminish tourism, reduce fish stocks, and leave coastal communities more vulnerable to less frequent but increasingly violent storms. Across our regions, the growing movement of impacted communities into urban areas could lead to ever higher numbers of people in slums and other informal settlements being exposed to heat waves, flooding, mudslides and epidemics of disease. This is a 2-degree Celsius world. It’s coming unless world leaders do something about it. At the World Bank Group we’re  doing everything we can to avoid a 2-degree Celsius world in light of these and other findings on climate change, every project that we do now will be informed by analysis that spells out any impact on climate change. We are developing tools that help countries better assess and adapt to climate change, including greenhouse gas emissions tracking, helping countries become more energy-efficient and advising them on building more climate-resilient infrastructure. We’re working with partners on building low-carbon climate-resilient cities, transforming the way we farm to maximize productivity and resilience and doubling global renewable energy and efficiency. And we can’t ignore the financing challenge. The world needs to find innovative ways to set an appropriate price on carbon and roll back fossil fuel subsidies. If we can get prices right, we can redirect finance to low carbon growth, lessen the chances of a 2-degree warming and avoid a 4-degree world.  I hope this report will help convince leaders that the benefits of strong, early action on climate change far outweigh the costs. Our successes and failures in this fight against climate change will, in my view, define our generation. Thank you. MR. ADLER: Well thank you, Dr. Kim. It’s great to have you here. DR. KIM: Thanks, Steve.  MR. ADLER: You all probably know Dr. Kim's extraordinary credentials as a doctor, as an anthropologist, a co-founder of Partners in Health, was recently President of Dartmouth College. You may not know that he was the quarterback – this is important to people who know American football – he was the quarterback of his high school football team in Muscatine, Iowa and he was also point guard on the basketball team. So you immediately know that the leadership skills started very, very early.  DR. KIM: Well don’t be too impressed, our football team lost every game and we had the longest losing streak in the nation, 56 games in a row. So it was a multi-generational losing streak.  MR. ADLER: It was a better introduction if you hadn’t said that. So again, let’s – since you are just back from the G8 and I think everybody was very interested in what happened at the G8, probably the most enduring image from the G8 is that wonderful Reuters photo of Presidents Putin and Obama sitting there which has got to be a textbook study of the meaning of body language because it's quite extraordinary. But one thing that did come out that didn't actually get a lot of publicity was that the G8, in its communiqué, did endorse the signing of a greenhouse gas emissions pact by 2015. How significant is it that the G8 supported it and Russia's going to be very important and that other emerging countries? Do you think we're really heading towards that type of agreement?  DR. KIM: Well I sure hope so, Steve. In the United States, of course, now that you mentioned it, of course President Obama's been very clear especially in his second term that he's going to tackle this problem. John Kerry, the Secretary of State is probably the champion previously in the House and the Senate on tackling climate change. So we have a lot of hope that the United States is stepping forward. It's great that the G8 endorsed a real movement, I think, toward a global agreement. The other country that I think has moved a lot even in six months is China. I mean they have introduced some really aggressive, the Shenzhen trading scheme, carbon trading scheme, they’re really serious about establishing a national carbon market. And in my recent talks with them, they said that this past winter where the pollution was so bad and the figures are coming out, now 1.2 million people died last year as a result of the pollution. I mean these folks - In China. This is the black carbon, the so-called short-lived climate pollutants that have just wreaked havoc in China. And so there’s a new spirit in China. The new government, I think, is really committed to tackling climate change. And so if we can get the European countries, the United States and China to agree to really tackle this issue, that’s the huge bulk of the issue. This is where we really have to make progress.  MR. ADLER: So climate change still remains a controversial topic despite the fact that there have been so many scientific reports like this one. And there was a report in May that came out in Nature Geoscience that's gotten a lot of attention that suggests a slowing of global warming in the last 14 years. And opponents are doing the types of things you support have seized on that and said look, this is not a serious problem as people have said. What’s your read of that report and how significant is it in shaping global opinion on the topic? DR. KIM: The critical thing is that you can’t really look at the last 10 years which that report - it was really a 10-year study. And the key is looking back from pre-industrial times through now and looking at what the trends are. Because of that report, the scientists went back and asked the question, so what did happen? Did it really slow down? What was really the reason for it? And it turns out that much of the carbon was absorbed in the deep ocean. So for example, what we're seeing is that greater acidity when carbon dioxide goes into water, it turns into acid makes the water more acidic. And so that's what has happened. So presumably, the ocean has a carrying capacity. At some point it's going to stop being able to absorb the carbon. And then the thing that we're really worried about is that that might have happened because the carbon was enough to have the water absorb it. And then at some point it's going to stop. And so we could see then a really rapid increase in global temperatures. The point is right now there is 97%, 98% agreement that human-caused global warming is a reality. And so in my view, in medicine, there's almost nothing that I can think of that has 97% or 98% agreement. And so it's, if you disagree with the science of human-caused climate change, you're not disagreeing that there's human-caused- that there's human anthropogenic climate change. What you're disagreeing with is science itself. And as far as I know it's the best we got, that modern science is the best we have. And so I think it's really the time to stop arguing whether it's real or not. The scientists agree and I think the effects that we're seeing today are really quite real. We have to move on to start thinking about what we can do to both mitigate and adapt to climate change.  MR. ADLER: I mean thinking about your report, it's really highly apocalyptic. And my sense is that people don't respond that well to long range apocalyptic predictions. And we face it in business, we face it in everything, the short term versus the long term. So how do you get people to focus on something that appears to be off in the future when they're facing so many immediate problems, the economy's struggling, all the issues we all face. Why should people focus attention or how can we get them to focus attention?  DR. KIM: Part of what we're trying to do in this report is bring attention to it. But in bringing attention to it, the other thing that we want to do is just to give people a sense that there are things we can do right now. We need a global agreement. We need a global carbon market. We need countries all over the world to remove fossil fuel subsidies but those are really hard things to get to politically. In the meantime though, there are so many things we can do and one of the things that we're trying to stress in this report and all of the work we're doing is there's an opportunity right now to move toward renewable energies. There's great new technology. There's an opportunity right now to build cleaner cities. There are cities all over the world that have already made huge strides. For example in New York City, Mayor Bloomberg said we're going to reduce our carbon footprint by 30% by 2030. They're going to get there by 2017. And all the companies and the buildings and the people of New York City have gotten together and moved much more quickly than anyone thought. I was just in Delhi and it's an amazing sight to be behind a bus in Delhi. Now I've been to developing countries all over the world and you just expect black stuff to be coming out of it. Nothing, because the Supreme Court mandated that all buses and even the little puttputt motorcycles have to run in natural gas. So Hong Kong decades ago decided they're going to cut the number of cars in the city of Hong Kong by half in a pretty short period of time. So there's things we can do right now, cleaner cities, renewable energy and climate-smart agriculture is a term that’s thrown a lot these days. But there's tremendously exciting things that are going on in ways of new forms of agriculture, new ways of terracing and protecting the river banks - these kinds of interventions can have a huge impact on preserving the environment and actually putting carbon back into the ground. We have to now get to the stage where we're working everyday to do the small things that we can do right now and then push our leaders to come to these global agreements.  MR. ADLER: So you don't think the small things taken together add up to enough to make a big change. But in part what you're saying is if we see some results locally it might encourage global leaders to take it more seriously? DR. KIM: Let's just take one issue, the so-called short-lived climate pollutants- this is an issue when she was Secretary of State, Hillary Clinton really championed. I mean these have a huge impact and it's the black carbon that has had such an impact. So the black carbon is doing a bunch of things. Right now these are inefficient coal-burning factors that are spewing this black stuff in the air. We can decrease short-lived climate pollutants dramatically in a short period of time. Here's what it's doing. First of all it's getting in people's lungs and killing people. This is what we're seeing in China. But it's also going up into the air and covering the snow-capped peaks of mountains and that by making them darker it absorbs some light and it increases the melting. But if we can take action on those right now, we can actually delay the rise of temperature to two degrees centigrade. So these are not small things. If we can move rapidly to more renewables, if we can build cleaner cities and if we can institute climate-smart agriculture everywhere, we can have a very major impact on global warming and we can do it today and the real point Steve is that this is not a bleak future where nobody's showering and no one has energy. This is a bright future where people do have energy, people are living in economies that are growing but it'll just be a lot cleaner.  MR. ADLER: Okay. Your report goes into so many different risks to growth from global warming. It's a little hard to get your arms around kind of what are the most serious ones. What are you most worried about? Is it water or is it the lack of water, is it too much water? I mean if we can focus on kind of one major problem perhaps in one major place, just illustrate what you're most concerned about.  DR. KIM: Climate scientists say that carbon is the currency of climate change, water is the teeth. We're already seeing struggles and conflicts over access to water. This is what I'm most worried about. The fundamental issue, Stephen, and one I wasn't really aware of before coming into this job is that the earth is fundamentally handling water differently. The jet stream has changed. The El Nino and La Nina effects are changing.  MR. ADLER: Is that why it rains here now all the time? Instead of most of the time? DR. KIM: Well this is one of the recent findings, is that the very wet summers are related to the way that the earth is handling water differently. What some of the climate deniers say is, how can you tie a particular event to climate change. And that's not what we're saying. We're not saying that a particular event and climate change are directly causing and related. What we're saying is that the climate change scientists have predicted that extreme weather events are going to increase in number. And so we are having- I can't- I've lost count of the number of once in a lifetime events that have happened in the last two or three years. Duh, there's something going on here folks. Once in a lifetime events all the time? So this is what the prediction is. And so it's a hard thing because there's not a direct if I do this, this will happen. It's a kind of collective solidarity that we have to exercise on behalf of our children. But it's not just on behalf of our children. Let me just give you an example. By the 2030 or 2040, if we get to two degrees Celsius, Bangkok could be underwater. So if you Steve are planning to retire in Bangkok which is a great place, you’d have to rethink your plans. This is very real. I have a 12-year old, 13-year old son actually just had a birthday, and 4-year old son. And for them, this is real. And I can just see it. My kids already I can see the way they’re going to talk to me. They’re going to say, oh thanks Dad, you were President of the World Bank, what did you do when you knew this was going to happen to us, how could you have given us the world where we know that so many people who don’t have water, where we know- just think about it. 40% of the land today used to grow maize in Africa won’t be able to grow it anymore. This is huge. So the UK government I think very rightly has focused on nutrition. And they focus really I think brilliantly on something called stunting which is kids who are lower height for age, meaning they’re malnutrition has gone on for a long time, chronic malnutrition. This is going to be everywhere. I mean we’re going to have this problem everywhere. And so for us, now that we have set this goal of ending poverty, there is no way we’re going to get there by 2030 unless we begin to tackle this issue aggressively. MR. ADLER: I mean it strikes me for the World Bank, you’re in an interesting position on global warming because there are some things one can do for people that would not be favorable for the global warming side. And in the past the World Bank has for example promoted coal-based projects in countries that didn’t have enough electricity. That would not seem to be good for the environment. On that sort of trade-off, where would you come out on kind of the coal trade-off? And you’ll probably go to the subject of clean coal, so do you really think there’s such a thing as clean coal? DR. KIM: Let me put it this way. I have two seemingly impossible things to reconcile. But in fact I think that they’re reconcilable in a lot of different ways. On the one hand, we’ve got to fight climate change. But we know that the vast, vast majority of the climate pollutants certainly historically but even today are coming from the United States, Europe and China. Those are the three main sources of carbon. We have got to make progress there. That’s really where most of it happens. And then we’ve got this other issue which is very real to us, is that people need energy to grow in order to grow. So let me give you an example. The great Ellen Johnson Sirleaf who was also at the G8 meeting, she became President in a country that had been in war for decades. And so now they’ve had 10 years of peace. But they have a total of 21 megawatts of installed electrical capacity. That’s nothing, that’s like a couple of city blocks in London. And so when I met with her and every time I speak to her she says to me, I need energy and I need energy so that we can get private sector investment so that I can create jobs. She said to me, I have 39 year old men who’ve done nothing but be soldiers their entire life, they need jobs or they’re going to pick up their guns again. So this is very real for her. And so in Liberia, I’ve got to figure out a way of quickly providing her the energy she needs to keep her people living, to attract the kind of private sector investment that will create jobs that will keep people living and not fighting in the jungle. She needs electricity for hospitals, for schools. This is very fundamental. So I’ve got to weigh those two all the time. And, you know, there some– we know that there are coal-burning plants that are incredibly dirty, and we know we can make them cleaner. It's never going to be as clean as solar or wind, but we know for sure we can make them cleaner. So if I have an opportunity to go into a setting and turn an extremely dirty coal-burning plant into one that's cleaner in a country that's extremely poor and needs the energy, I'm going to try everything I can to avoid investing in coal. We know that's the dirtiest form of energy. I'll do everything I can not to invest in it, but I can't look Ellen Johnson certainly from the eye and say because the West has been polluting and China has been polluting for so long, you're going to have to wait. You're going to have to tell your people that they're not going to have jobs, that they're not going to have electricity for the hospitals, they're not going to have electricity for the schools. I can't do that so I've got to figure out a way in every single case to balance those two too. MR. ADLER: So let's turn away from this for a moment, from global warming, and talk about a few other things. One of the things the World Bank does is it estimates growth both in the world generally and in developing markets. And the latest report showed growth in developing markets I think at 5.1% in 2013, going up to 5.7% in 2015. Is that good enough, and what do you see as the main threats to growth going forward, particularly take a look at the potential elimination of quantitative easing in the US and maybe what Japan is doing? DR. KIM: One of the things before – I'd be happy to go there, one of the things that I'd say and in every single G-20 finance ministers meeting, I've made the point that climate change is a short-term, medium-term risk to the global economy. And, you know, people still think it's about their grandkids. It's really not. It's right in front of us. So let me put that on the table first. It's a real threat. You know, the developing countries, let me just give you an example. I was at the Tokyo International Conference on African Development. It's a wonderful meeting where there were I think 50 heads of state from Africa. And the Japanese people have been extraordinarily generous over the years to Africa, so it was wonderful to see them all get together. And as I was walking in, I was talking with my Vice President for Africa Makhtar Diop who was the Former Finance Minister of Senegal, and he said, you know today, as opposed to five years ago – these meetings happen every five years – what a different story. Five years ago in 2008, the African heads of state walk into that meeting and people were thinking, what on earth is going to happen to Africa now that the economic crisis looks so bad right now? What on earth is going to happen then? What happened then was over 5% growth throughout that period of time. And now they're walking into this meeting confident. Not a single African country's in hyper inflation. They have done so many things right. They in fact walked in saying look, you know, we have more fiscal space than just about any other– we've created that fiscal space. We weathered the downturn very well. We took these difficult measures in terms of fiscal consolidation years ago. We got the macroeconomics right. And now, what we want most is investment. It was really incredible. And so I think that’s one of the things that now we have to worry most about. What the African leaders are saying is, in this age of very low interest rates, why is it so difficult to get access to long-term capital for infrastructure? The BRICS countries are talking about a BRICS bank. Of course I meet with them all the time. And what they tell me is, look, we have $4.5 trillion of necessary infrastructure that we have to build in the next five years. And even for us in these low interest rate times, we're having trouble finding long-term capital. So it's not a surprise if they're talking about a BRICS bank. $4.5 trillion, and in the amount of capital out there in the world that's so small. So that's the real concern, that as quantitative easing slows down – and another real concern is if there was a sudden stop to quantitative easing, the developing countries are really worried about access to capital. So that’s one of the things we're working on. There's a huge infrastructure need, and we've got to begin to meet it. So we're working on developing something we're calling the global infrastructure facility, where we're not only putting our own money into infrastructure but we're trying to illustrate for investors – I mean again in Tokyo, there's $1.3 trillion sitting on the sideline, earning very low interest rates. And so I went around trying to say look, Africa's a great investment. We've increased our own investment in Africa ten-fold in the last 10 years. And there's a very, very good return to be made. Moreover, what I tell the investors in Tokyo, was that you can have the most wonderful double bottom line, you can make a good return on your investment and you can also provide electricity for people who desperately need it. To go back to the Ellen Johnson story, not only does she only have 21 megawatts of installed capacity, she pays 54 cents a kilowatt hour which is five times what they pay here in London, five times. So what these investors could do is make a good return off of investing in energy and, at the same time, increase access and reduce the price of electricity in places like Liberia. But, you know, the Japanese investors were saying, we don't know. Africa's so far away. One journalist, the top financial journalist in Japan asked me a question, saying, Dr. Kim, how can you ask us to invest in Africa after what happened in Algeria? The Japanese were involved in the incident in Algeria. They lost lives. And I said, you know, Africa's not a country. It's a continent. And there are huge difference between Algeria and other parts of Africa. I said there are even differences in the investment climate between Northern Mali and Southern Mali. And one of the things that we have to do a better job of doing at the World Bank is to say, look, we think that official development in systems is really important, but it's $125 billion a year, Steve. And I just told you the numbers, $4.5 trillion over five years, so $1 trillion a year almost just in the BRICS countries in infrastructure need. $125 billion a year is not going to touch it. Now, ODA is really critical. And what we're trying to do is to make our investments with IDA, our concessional loan lender for the poorest, every time we invest these very precious funds that come from Official Development Assistance, we want it to leverage lots of private sector investment. I mean that's the story for the future. The story for the future is development won't happen unless the developing countries can get to private sector investment. MR. ADLER: You've been talking a lot about Africa, so just to come back to it, there's a lot of talk of Africa rising and even the G-8 report said it was the next emerging continent. On the other hand, enormous issues there with the Islamic radicalism in some places, Nigeria and Mali. You were just in the Congo and you've gone to Rwanda with the UN Secretary General. And, by the way, I think that you said the first time the UN Secretary General and the Head of the World Bank have traveled together? DR. KIM: On a mission anywhere, by the way. MR. ADLER: Interesting. But I think a lot of people are curious about why the World Bank put $1 billion into that war-torn region. And the question is, would it be effective to have that type of aid for infrastructure and health and energy in a place that were fighting is occurring at such a terrible pace? DR. KIM: The Secretary General and I have been talking a lot about the historical missions of these two institutions, the United Nations and the Bretton Woods institutions, the so-called international financial institutions. And of the things he said is that, you know, the intention of the founders always was that we would hand in glove, that we would work closely together. But, you know, there's a great African saying, when the elephants fight, the grass suffers. I've been the grass most of my life in these countries, working in the village level, in the slums. And I have watched for years as these organizations have fought each other, and I kept thinking, why on earth would you do that? And so we just made a commitment that we were going to, at least from the top, we were going to send a message that we want these institutions to work together like they've always been meant to work together. And so I invited the Secretary General to come to one of our annual spring meetings. And he kept saying, he said you know, everywhere I go where there's conflict, the issue is not peace treaties. The issue is development, that if people have jobs, they will not resort to the only thing that will provide them meals, which is becoming soldiers. So it's an experiment and we hope that it's one that will work out very, very well. I don't think we have any other choice. The idea is that rather than saying, we're not going to go in and work on development projects until there's peace. What we're saying is, we're going to try to leverage peace agreements with development. So we've essentially said that as long as you abide by the peace framework, we're going to go in aggressively and use this $1 billion for really basic things so that – half of it is for energy. One of the big investments is in something that's very exciting, the Rusumo Falls hydroelectric power project which is a run of the river project. In other words, we don't back up water. You use the run of the river to create electricity. And you lose about 20% of the efficiency, but it's a very exciting project. And that area desperately needs energy. It's amazing how little energy's available in that region. And so energy is critical because companies won't come in unless there's energy. I mean right now in Myanmar, we're working like crazy to create more power because Korean and Japanese and Chinese companies want to come in, set up shop, and help. And their governments have told them that they really want development to happen in Myanmar. There's got to be a peace dividend, a democracy dividend there, but they need energy. So we're, our goal in the Great Lakes region is to say go forward with the peace agreement. That's really important. Do everything we can to address the serious social issues. But in the meantime, just burrow forward on the kinds of projects that could truly have a transformative impact. We're going forward believing that one of the ways of preventing conflict is to have development, to have job creation especially for women, especially for young people. That's the goal, we'll see how it works. We're not going to sit back for five years and see how it works. We're actually going forward. We've made a commitment. So we hope that sometime in the fall we'll be able to travel to the Sahel together as well. MR. ADLER: I'm going to ask you one more question before we open it to the floor. We have a lot of financial professionals in the room. People have been asking questions about where to invest, how to invest. And you were in India too recently and you talked about how big the infrastructure needs were and there was no way anybody was going to get that kind of money unless you had private equity and sovereign wealth funds and other private investors. Yet when you talk to investors, they're very concerned in India and many places in emerging markets about corruption, about regulatory requirements that it's just so onerous about unpredictability in terms of rule of law. I mean what do you say to those financial professionals both in terms of going into India and other places in the emerging markets in terms of just how risky are those investments? DR. KIM: The most important thing I would say is please don't paint with too broad a brush. Look specifically at specific industries. And I'll be very blunt about it, we have something called the Asset Management Corporation at our private sector agency, the International Finance Corporation. And at the Asset Management Corporation, we are now working with sovereign wealth funds, we're working with pension funds. And they're putting money into the Asset Management Corporation mostly because over the past 15 years, our internal rate of return has been 20%. Not only have we made money, but we've done it really focusing on development impact. The reason we're able to do so well is, first of all, our borrowing costs are very low, I mean we have a very strong AAA rating, but also because we're able to hedge our risk over the entire world. We invest in a lot of things over the world and we're even investing in the so-called fragile and conflict-affected states. But the most important thing is that most private equity firms don't have the people to be able to go into a place like the Great Lakes region and realistically look at risk and reward. We've been doing it since 1955, looking at the private sector and saying, in the poorest countries what are the opportunities for investment? What are the investments that we feel secure about? Also, we have another agency called the Multilateral Investment Guarantee Agency that provides political risk insurance. In other words, if your company is nationalized, we'll make good on your investment in that company and we've not had to pay very often because we make it clear to the countries that it's not a good idea to do things like that. I mean, you know, if you can do that, you can do that if you want. But then what happens is that the market will react to you and your borrowing cost will skyrocket and you'll have trouble. We try to help countries think about their path toward development in the modern market economy in a way that makes sense for them and makes sense really for their people as well.  MR. ADLER: Great. Thank you very much. Let me turn it over to the audience. I’d like to first call on Nina Chestney from the world’s largest independent news organization, Reuters, whom may very well have a question. Take the microphone. QUESTION: Hi, I wanted to ask about the UN climate process. You talked about China and the way they’re moving forward the momentum on that, but isn’t it time that the status as a developing country in these talks was perhaps notched up one because they are still a developing country in the eyes of the UN climate deal process. Isn’t it time they became a developed country to move things forward even further given their economic growth and their CO2 emissions output. And also on the UN process, the deal may be signed by 2015 but it won’t come into force until 2020. Many scientists think that is too late to stop the rise of global temperature. Is the UN process kind of redundant given its slow process progress and isn’t it better to look at national efforts and try to make progress that way? Thank you. DR. KIM: Thank you. So, in terms of whether China is a developed or a developing country. You know, there have been a variety of arguments made over the years, but I think what China is saying now which really is different is whatever you want to call us, we feel an enormous sense of urgency to tackle this problem. I mean, the goals that they’ve set for reducing their carbon footprint, for reducing short-lived climate pollutants are really, really aggressive. I’m sure you know that when the Chinese government decides to do something they move more quickly and more efficiently than just about any government I’ve ever seen. And so I don’t know their designation is so important. I mean, I think that was part of an argument for a while, we’re a developing country, we should be allowed to pollute. I don’t think that’s what they’re saying now. I think they’re saying something really quite different and in working with them I know that they are really serious. I mean, we actually provide some assistance through the program for market readiness on helping them develop their carbon market. So they are serious as any country that I know in terms of reducing their carbon output. Having said that, it’s still an issue. They’re still building coal plants. It’s not going to be simple but in terms of setting aggressive targets, there’s really, they’ve really surprised many of us. As far as the UN process, again, I talked to the Secretary General a lot about this because this is the top of his list of concerns. I think we have to think of it this way: I think that there’s no question that we still have to support the negotiation process. We’ve got to have a global agreement. We’ve got to do it. and for me, the fact that it doesn’t come into effect until 2020 is really quite separate from what we have to do right now. And that’s why we keep talking about, look, don’t sit back and say we can’t do anything because there’s no global agreement. That’s just a lame excuse in the face of what we’re about to hand to our children in terms of the nature of the world that they’ll live in. And so, there are things we can do right now. When I went to China last fall to visit the soon-to-be Premier Li Keqiang, I didn’t sit in the chair for five minutes before he asked me. I want you to do a major report on urbanization. And we know that China is, they are just hundreds of millions of people going to move into the cities over the next decades. And so, he said we know we can build cleaner cities and we want you to write a report telling us everything that people have done all over the world. In fact, even telling us things we’ve been doing in China that we don’t even know about so that we can scale it up, right? So the notion that we would be able to deliver this report about building clean cities and China would sit and say, okay, everyone do this, and to see it unfold in front of us is really quite exciting. So what they’re saying and what everyone needs to say is please don’t use the lack of a global agreement as an excuse not to take the very clear actions we can take right now to build a cleaner planet. MR. ADLER: Thank you. Other questions? Up front here. QUESTION: I’m Monique Villa from the Thomson Reuters Foundation. And I have a question because it’s very good to see your interest to invest in Africa, in many countries, in India etc., which is really good. And the World Bank in 10 years has made a lot of efforts in investigating corruption regarding the loans that you make and investment you make. Are you satisfied with the results or do you think you should reinforce that? DR. KIM: So it was one of my predecessors, my good friend Jim Wolfensohn, who first uttered the “c” word as he says. And he gave a famous speech in 1996 called “The Cancer of Corruption”. And ever since that time, and especially under Bob Zoellick, my immediate predecessor, the World Bank has made fighting corruption a top, top issue. So last July 2, my first day on the job, I walked in the door, they took me upstairs and I said, okay, you have to make a decision, are you going to cancel the Padma Bridge Project in Bangladesh or not? So I sat down and I looked at the evidence and there was clearly evidence that there was corruption going on, so we cancelled it, my first day on the job. And we continue to do that, but the other thing is that we continue to work in places where we know there’s corruption, Afghanistan for instance, we put billions of Dollars into Afghanistan and we will continue to work in Afghanistan even though that all around us we know that there’s corruption going on. How do we fight corruption? Well, we own something like 20 armored vehicles and I rode in one of them when I visited and they’re level 4 which means that they can withstand an IED, but they can’t withstand missiles, so more details than I needed to know at that time, but I was very proud of our team because they get in those vehicles and they ride out into the country side and they check whether the money is going to where it’s supposed to be going. And we’ve even set up a system in Afghanistan where citizens can go and look at the projects and take pictures to make sure that things are actually happening and they transmit the pictures back to the World Bank office to know that the money’s actually going where it’s supposed to be going. And the really cool thing is that we’ve given them a feature because there are checkpoints, informal checkpoints that are set up so that if they take their phone and push one button, it erases all the pictures, because we know that there will be people trying to stop them from doing this kind of work. We’re very comfortable that we’re tackling corruption effectively. And every time we see, we call it, and we’ll do things like cancelling important projects. But has that stopped corruption everywhere? No, of course not, and it has not. But what we’re hoping is that by us being more and more rigorous, we are setting a standard, all the other multilateral development banks have same standard and we hope that that will spread to the government, but just take the example of Afghanistan. What are we going to say? In 2000, there were 250,000 kids in school, zero girls in school, now there are 10 million kids in school, 40% are girls. And we are at risk of going right back to the 2000 scenario unless we’re there especially providing health education and social protection. They need jobs. The combatants need jobs and so we’re working right now to try to develop the private sector in Afghanistan, so you can’t sit back and say, well, we’re not going to work in any country where there’s a trace of corruption because there are still poor people there, right? And so, we’ll continue to work. We’ll continue to follow the money. We’ll still continue to buy the armored cars, but it’s just a reality of the world that we live in and we hope that by us continuing to be tough on it, that we can help countries move in a better direction.  MR. ADLER: Let’s take some more questions on the aisle in the middle here. QUESTION: Hi, I’m Laurie Goering, also at the Thomson Reuters Foundation. We’re very interested in this. I’m curious about China. You say is that right of course, that China is really serious about this in doing a lot and aiming to do more, but at the same time, what you see is that it’s the rate in growth in emissions that’s falling, not the rate of the emissions. How does this all begin to add up to something that actually works? What is it going to take for the emissions to fall, not just to slow the rate at which we’re getting to 4 degrees or higher? DR. KIM: Yeah. It’s a great question and it’s the question that we’re all asking. But the rate of growth of the country as a whole is just so fast that they’re trying to keep up, right? And I truly do think that we’ve not yet made the most of all the technologies that are possible, meaning have they done as much they can  in terms of really truly building clean cities, because that’s where the vast majority of people are going to live, if they can really make an impact on building clean cities, probably natural gas will be transitional fuel that they’ll have to use, but they have, they’re investing more in solar, in wind, in other forms of energy really than almost any other country. So I think what you’re going to see is over time a gradual shift to renewables, a way of building cities that are clean, more efficient buildings. All those things together we think will add up to an eventual drop. I know that the Chinese government is committed to this, I mean, compared to the other large emitters, their announcements recently had been the most aggressive, had been the most aspirational, so my role right now is to run like crazy to try to continue to help them think about specifically and in terms of the implementation, how they’re going to do it. So right now, that’s why we’re working so much on cities. It’s such a big issue for them, they’re putting into place their carbon output structure for the next generations in the way they build their cities. So we’re desperately trying to catch up, the Chinese are really interested in climate smartagriculture, they’re already doing some of it. We think that they can make a lot of progress, and of course in the area of renewables, this is really important. The fact that China is being so aggressive about their own carbon market is a really, really encouraging sign for the possibility of a global agreement. Look, if we can get Europe, the United States and China to agree on a price of carbon, it’s so much better for us because at that point, investments will turn to low carbon investments and we’ll finally, we’ll have market mechanisms working to help us battle climate change. And that’s going to be the ultimate answer is that when market mechanisms are clear, and most companies have already built the price of carbon into their future projections. They’re expecting it, so we just need to get about coming up with the political solution as quickly as we possibly can. I hope that the practical solution to the carbon market will happen long before 2020. That’s what we’re going to keep pushing and we’re going to try to make it clear that this is both possible and the right thing to do. Let me just say one other thing. I think part of it too is that we’ve not as a community not been bold enough. I think what happens with extreme weather events is something crazy happens and then the public turns to climate scientists and say, uh-oh, now what? And we’ve always been providing small bore answers, well, things like put a solar panel on your roof, and shower less, and I think what people think is that they think, oh, I see, so you’re really not serious about this yet. What we have to do is put together a plan that is equal to the challenge of climate change and we haven’t done that yet. We’re working on doing it, but once the public, because as these extreme weather events continue to happen, I think public opinion is going to change, just like it has in China. I think it’s going to change throughout the world. And then at that point, the challenge will be on us to have a real plan that’s equivalent to the challenge. MR. ADLER: So to make sure our guests get a chance, could I just see non-Thomson Reuters hands for a minute? Okay, up here, second row.  QUESTION: Still a journalist, I’m afraid. Geoffrey Lean of the Daily Telegraph. Thanks very much. That’s been very refreshing and particularly refreshing to hear your emphasis on short-lived policies which don’t often get the attention they deserve. But coming into that and coming into China, there’s recent agreement between Obama and CE about reducing, well, phasing out the HFC’s. It seems to me perhaps the biggest step for we’ve yet taken including here too, is the future - and given the difficulty, given you say about 2020, given the difficulty of getting everything to the US Congress, even if as agreement is made - is the future more in these kind of bilateral agreements? At least initially. I don't feel that - to anyone the importance of global agreements, having suffered through 23 years of negotiations of them. I don't have great hopes that it will happen very soon. DR. KIM: Well, I think we have to encourage any kind of agreement that anyone will come to and I think that's my point today. Let me say again, the work that the Secretary-General is doing on reaching a global agreement is just critical. We cannot- I mean, people were traumatized by Copenhagen, we know that. That was a really difficult meeting but still, a global agreement is critical. But in the meantime, whatever we can do should be welcomed and I think that I was very encouraged by the agreement as well. But the thing that is most encouraging to me is that I know from talking with President Obama's people working on this issue and from talking with Secretary John Kerry, that the level of seriousness in the United States at the top in tackling this issue just couldn't be higher. And I really think, as the extreme weather events occur in the Midwest of the United States and as these Hurricane Sandy's, we begin to understand the implications that the other legislators will come around. And I don't know how long it will take but I hope it's not too long. And in China, again, the discourse, the public discourse has fundamentally shifted in China. So, these first steps are really important. Every time we see them, they should be encouraged. Whatever agreement we can come to should be encouraged but in the meantime, I don't think we should give up on the global agreements. We have to keep pushing in trying to reach some kind of agreement.  MR. ADLER: Mark Jones is channeling questions from our Thomson Reuters Global Markets Forum and I think, probably some of our guests have questions on there. MR. JONES: Yes, a couple of questions. Picking up on some themes from quite a large number of questions on Twitter with the #askWorldBank. So I'll give you both of them. First one is about getting youth involved. So, Codrin Paveliuc from Belgium says there's quite a lot of discussion about getting youth involved but when will we actually see some of this happening and the World Bank's role in that? And second one is from Wanda, who echoes another theme running through the questions, which is, \"How do you answer critics of energy efficiency goals who claim it will hurt the economy to implement higher standards?\" And she has in mind in particular, the United States. DR. KIM: So on the first one, I would just encourage all young people to look at our Connect4Climate work where we're specifically trying to engage young people and being creative about it. But I have to say, this effort to combat climate change doesn't yet look like a movement. And I have been extremely fortunate to participate in some movements. The battle against HIV was a movement. And so one of the things I keep asking my friends in the environmental world is, where is the plan and where is the movement? And they say, \"What do you mean?\" I say, \"Well look at HIV.\" We discovered the patients, not even the virus in 1981. By 1996, we had treatment that really gave people, turn it into a chronic disease. And that was not easy. There was a one group of activists, the people from ACT UP, who went into the National Institutes of Health in the United States, threw blood on people until they put billions of Dollars into HIV research. There are another group that changed the rules of the Food and Drug Administration to get drugs to a fast track. They did everything you needed to do in the value chain, if you let me borrow a business term, to get to where they wanted to go. And I keep asking, where is the plan for that? And we don't have it yet. There's not enough research, there's not enough technology being passed on to the private sector. We don't have the pieces in place. And so it doesn't feel like a movement. Young people got involved in the HIV movement because it felt like a movement and they wanted to be part of something that powerful and exciting. We need that. And we probably need the young people to lead on it. We need the young people to say, \"Come on, old folks, you know, you may be gone by the time this hits, but our world is going to be awful and we're going to prevent that.\" But it hasn't happened yet. And in terms of the second question, look, a lot of people say it's not possible to have green growth; that you either have green or you have growth. Look, we have no choice. And I just, we're saying it now but 2030 is not that far away. In 2030, my youngest son will be graduating from college, right. And if there's a two degree Celsius world when he's graduating from college, I just- it scares me and so what it tells me is, we have just got to find the way to have growth that's green. And I'm convinced, looking at all the data on the potential of new technology, looking at the potential of things like hydroelectric power, of geothermal power, of micro-grids using solar and wind energy, I think that there is no question that it's possible and if we devote our energy and our ingenuity to making it possible in all over the world, I think that in a great sense will help us determine who the winners and losers are going to be. I think the winners are going to be those who are able to grow their economies while also reducing their carbon footprints. I mean, Germany's done that and it's very impressive the way Germany has uncoupled growth from their carbon footprint. Germany's done it, they've made a big commitment and that's where I'm going later this evening, partly to celebrate their commitment to doing that. Every country in the world has to move in that direction. MR. ADLER: I think we have time for one quick question and one quick answer. All the way in the back there. QUESTION: David Harris from FTSE, the index company. I mean, leading on from what you were just saying, you've spelt out a very kind of passionate image of the transition to a low carbon economy, the growth of kind of new emerging cleaner industries of the future. For that transition to take place, will obviously require a redeployment of capital from institutional investors. And what do you see as the barriers for institutional investors making that kind of switch and how do you see us trying to overcome those barriers? DR. KIM: I think the fundamental issue is that institutional investors are- it's hard for them to get their head around the fact that there are people who understand the nature of risk and reward in countries like Rwanda, that we just mentioned, as well as they understand the nature of risk and reward around investing in information technology, for example. They just can't imagine that we at the World Bank or the IFC especially, and at MIGA- can you imagine, we provide- just to give you an example of how much we understand it, there's a phenomenon in Rwanda where there are lakes and under, in the bottom of the lakes there's methane; and that methane sometimes explodes. So it's a huge hazard. But at the same time, you can actually get that methane out of the ground and use it for energy, right, so that you're killing two birds with one stone. We guarantee a project like that. And that means we understand a lot about the nature of risk and reward around projects that are as seemingly arcane and exotic as that one. I think that's the biggest issue and we have to do a better job and letting institutional investors know that we have looked at risk and reward since 1955 in these countries. And that it's not just that you're going to make a good return, you're going to make a good return and you're going to help countries move on the path towards development. That double bottom line, the notion that Michael Porter talked about is shared value. We have to be better at communicating that but they're skeptical. And they're understandably skeptical and it's only going to really shift as certain investors start making a lot of money and start having really good outcomes in these poor countries. And we're committed to helping investors develop that sense of confidence.  MR. ADLER: Dr. Kim, thank you so much for being here.  DR. KIM: Thank you, Steve. MR. ADLER: You can come back any time. Thank you. DR. KIM: We really had a lot out of it. Thank you. Thanks very much. We just had a great time.  ","date":"2013-06-19T13:01:00Z","contenttype":"Speeches and Transcripts"},"_42636971288978d3489b2c0e77f4454de0585717":{"id":"42636971288978d3489b2c0e77f4454de0585717","title":"Mobilizing Agricultural Science and Technology for Ending Poverty in Africa and Beyond","countrycode":"CN,BR","country":"Brazil,China","country_exact":"Brazil,China","countrycode_exact":"CN,BR","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2013/06/04/mobilizing-agricultural-science-and-technology-for-ending-poverty-in-africa-and-beyond","count":"China,Brazil","descr":"In a speech on June 4 in Beijing, China, Makhtar Diop urged Chinese and Brazilian partners to work together to improve productivity and profitability for Africa's small farmers.","keywd":"country:Brazil,subject:agriculture and food security,country:China,regions:Africa","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","topic":"Agriculture And Food Security","cqpath":"/content/wb-home/en/news/speech/2013/06/04/mobilizing-agricultural-science-and-technology-for-ending-poverty-in-africa-and-beyond","regionname":"Africa","wcmsource":"cq5","content":" Mr. Chairman, Distinguished Guests, Ladies and Gentlemen, thank you for the honor of your invitation.  This is my second visit to China since being appointed Vice President for Africa at the World Bank.  I look forward to nurturing the China-World Bank partnership particularly on today’s vital topic: mobilizing agricultural science and technology for ending poverty, in Africa and beyond.  We meet at a critical time in the global economy.  Even as industrialized countries are suffering from anemic growth rates, Sub-Saharan Africa’s 49 countries are booming with growth rates of five percent and more.  Demand for food is rising globally, and food prices are more volatile.  Adding to this complex mix, we know that climate change will impact Africa’s agricultural potential, particularly in dry land areas that are home to a majority of poor people. As you may be aware, under the leadership of our new President, Jim Yong Kim, the World Bank has set new goals for ending poverty and achieving shared prosperity in our lifetime. Reducing the percentage of people living on less than $1.25 a day to three percent by 2030 and increasing the incomes of the bottom 40 percent of the population in every developing country will require a thriving agricultural sector that provides jobs, food and income security, as well as greater, more open market access and trade, including within Africa. I am here to talk about Africa and its unrealized – but achievable – potential in the farm sector. China feeds nearly 20 percent of the human family.  Africa can and must benefit from the wealth of China’s experiences in sustainable food production and rural transformation.  Nowhere is the need for an agricultural transformation greater than in Africa’s dryland areas.  In the Sahel sub-region, over 10 million people are facing chronic food insecurity.  In the Horn of Africa, over 8.32 million people are facing a stressed or crisis phase of food insecurity.  We are taking a strategic, regional approach to tackling these challenges focusing on reducing vulnerability and increasing resilience, and promoting greater economic opportunity and integration. The World Bank is committed to making a positive difference in Africa’s farm economy. Given the importance of the agricultural sector, the World Bank’s Action Plan commits us to providing $8-$10 billion annually. A significant portion of this, up to one-third, is being directed to the specific needs of Africa’s farm sector. We have scaled-up the World Bank’s agricultural program in Africa quantitatively and qualitatively.   Notably, we are:Expanding our lending program, from US$0.4 billion in 2008 to US$1.2 billion a year.  In addition to budget support and traditional investment projects, these investments will support public-private partnerships and larger, sub-regional operations that generate economies of scale and transformational impact.Working to boost Africa’s irrigated area, from 20 percent currently to 40 percent by 2030.  This goal will require US$40 billion, with the Bank potentially financing one-quarter of the investment needed.Moving from modest and fragmented pilot efforts to bold, systematic projects in land administration.  It is time for a big push to scale-up best practices, and we aim to deliver at least two new land administration projects per year, US$150 million each, leading to at least US$1.5 billion over 10 years.  A target worth striving for would be to reduce time required for registering property from 65 days to 30.Working to increase market access, remove trade barriers, and improve competitiveness to double food trade in ten years.  We want to be ambitious, improve trade, transport, infrastructure and food safety systems with a 10-year target of cutting by half the costs of bringing produce to market. These are some examples of how we can achieve catalytic, transformational impact in Africa’s farm economy.  Overall, the focus of our investments will be on achieving the big prize of truly transformational change by: raising agricultural productivity particularly in dryland areas, linking farmers to markets, strengthening value chains, reducing risk and vulnerability, promoting gender equality and enhancing the environmental contribution of agriculture in reducing greenhouse gas emissions. To help meet these goals, we believe that Climate Smart Agriculture (CSA) offers tremendous hope of achieving the triple wins of increasing farmers’ incomes, helping them adapt to future climatic changes, and contributing to the battle against global warming.  It is well known in development literature that the Green Revolution which transformed food production in Asia and Latin America bypassed Africa. We are here to change the trajectory of Africa’s future agricultural development. For Africa to bring about its own sustainable Green Revolution – or Ever Green Revolution – we need to work together to strengthen our collaboration, work together more on strategic partnerships that are focused on the special needs of small farmers, all with a view to raising the productivity and profitability of Africa’s farm sector. We need more South-South learning and sharing of experiences.  This is an area where our host, the Chinese Academy of Agricultural Sciences (CAAS) and Brazil’s EMBRAPA can play a signal role in bringing about the new partnerships needed for Africa’s agricultural sector to thrive.  China’s successes in the Loess Plateau and Brazil’s transformation of the cerrado provide valuable lessons of experience. The good news is that change is happening, as more and more African countries are recognizing the latent power of their agricultural sector in delivering sustainable reduction in poverty. In 2003, 53 African countries agreed to work together to scale-up agricultural investments, strengthen planning and programming, expanding evidence-based policy making and improving coordination among external partners.  The Comprehensive Africa Agricultural Development Program (CAADP) was born with the blessings of the African Union Commission. Today, CAADP at its tenth anniversary has achieved noteworthy successes.17 African countries have met, or surpassed the CAADP target of 6  percent agricultural growth40 African countries received CAADP support to help them achieve their agriculture and food security goals.CAADP has enabled systems for African leadership, collective action and peer review.Record high inflows of ODA to African agriculture have been achieved – US$ 4 billion annually in 2010 and 2011. One of the most important outcomes of CAADP-led processes has been donor harmonization and alignment.  CAADP is an Africa-focused, African-led, African-owned and African-implemented program.  One of the most important developments for which CAADP can be given credit is that development partners – including the World Bank – have aligned their strategies to support CAADP priorities. As we look forward to a new era of scientific collaboration, I am sure that the CGIAR which led the Green Revolution can now rededicate itself to bringing the best of modern science for the benefit of African farmers.  I would like to call upon this great assembly to dedicate ourselves to this important task of improving African agriculture.  I am sure it can be done with your support.  There has never been a better time to change the trajectory of African agriculture through a focus on greater productivity, more equity, and more sustainable farming practices.  Thank you. ","content_1000":" Mr. Chairman, Distinguished Guests, Ladies and Gentlemen, thank you for the honor of your invitation.  This is my second visit to China since being appointed Vice President for Africa at the World Bank.  I look forward to nurturing the China-World Bank partnership particularly on today’s vital topic: mobilizing agricultural science and technology for ending poverty, in Africa and beyond.  We meet at a critical time in the global economy.  Even as industrialized countries are suffering from anemic growth rates, Sub-Saharan Africa’s 49 countries are booming with growth rates of five percent and more.  Demand for food is rising globally, and food prices are more volatile.  Adding to this complex mix, we know that climate change will impact Africa’s agricultural potential, particularly in dry land areas that are home to a majority of poor people. As you may be aware, under the leadership of our new President, Jim Yong Kim, the World Bank has set new goals for","displayconttype":"Speeches and Transcripts","originating_unit":"EXTCC","originating_unit_exact":"EXTCC","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Speeches and Transcripts","node_id":"42636971288978d3489b2c0e77f4454de0585717","wn_title":"Mobilizing Agricultural Science and Technology for Ending Poverty in Africa and Beyond","wn_desc":" Mr. Chairman, Distinguished Guests, Ladies and Gentlemen, thank you for the honor of your invitation.  This is my second visit to China since being appointed Vice President for Africa at the World Bank.  I look forward to nurturing the China-World Bank partnership particularly on today’s vital topic: mobilizing agricultural science and technology for ending poverty, in Africa and beyond.  We meet at a critical time in the global economy.  Even as industrialized countries are suffering from anemic growth rates, Sub-Saharan Africa’s 49 countries are booming with growth rates of five percent and more.  Demand for food is rising globally, and food prices are more volatile.  Adding to this complex mix, we know that climate change will impact Africa’s agricultural potential, particularly in dry land areas that are home to a majority of poor people. As you may be aware, under the leadership of our new President, Jim Yong Kim, the World Bank has set new goals for ending poverty and achieving shared prosperity in our lifetime. Reducing the percentage of people living on less than $1.25 a day to three percent by 2030 and increasing the incomes of the bottom 40 percent of the population in every developing country will require a thriving agricultural sector that provides jobs, food and income security, as well as greater, more open market access and trade, including within Africa. I am here to talk about Africa and its unrealized – but achievable – potential in the farm sector. China feeds nearly 20 percent of the human family.  Africa can and must benefit from the wealth of China’s experiences in sustainable food production and rural transformation.  Nowhere is the need for an agricultural transformation greater than in Africa’s dryland areas.  In the Sahel sub-region, over 10 million people are facing chronic food insecurity.  In the Horn of Africa, over 8.32 million people are facing a stressed or crisis phase of food insecurity.  We are taking a strategic, regional approach to tackling these challenges focusing on reducing vulnerability and increasing resilience, and promoting greater economic opportunity and integration. The World Bank is committed to making a positive difference in Africa’s farm economy. Given the importance of the agricultural sector, the World Bank’s Action Plan commits us to providing $8-$10 billion annually. A significant portion of this, up to one-third, is being directed to the specific needs of Africa’s farm sector. We have scaled-up the World Bank’s agricultural program in Africa quantitatively and qualitatively.   Notably, we are:Expanding our lending program, from US$0.4 billion in 2008 to US$1.2 billion a year.  In addition to budget support and traditional investment projects, these investments will support public-private partnerships and larger, sub-regional operations that generate economies of scale and transformational impact.Working to boost Africa’s irrigated area, from 20 percent currently to 40 percent by 2030.  This goal will require US$40 billion, with the Bank potentially financing one-quarter of the investment needed.Moving from modest and fragmented pilot efforts to bold, systematic projects in land administration.  It is time for a big push to scale-up best practices, and we aim to deliver at least two new land administration projects per year, US$150 million each, leading to at least US$1.5 billion over 10 years.  A target worth striving for would be to reduce time required for registering property from 65 days to 30.Working to increase market access, remove trade barriers, and improve competitiveness to double food trade in ten years.  We want to be ambitious, improve trade, transport, infrastructure and food safety systems with a 10-year target of cutting by half the costs of bringing produce to market. These are some examples of how we can achieve catalytic, transformational impact in Africa’s farm economy.  Overall, the focus of our investments will be on achieving the big prize of truly transformational change by: raising agricultural productivity particularly in dryland areas, linking farmers to markets, strengthening value chains, reducing risk and vulnerability, promoting gender equality and enhancing the environmental contribution of agriculture in reducing greenhouse gas emissions. To help meet these goals, we believe that Climate Smart Agriculture (CSA) offers tremendous hope of achieving the triple wins of increasing farmers’ incomes, helping them adapt to future climatic changes, and contributing to the battle against global warming.  It is well known in development literature that the Green Revolution which transformed food production in Asia and Latin America bypassed Africa. We are here to change the trajectory of Africa’s future agricultural development. For Africa to bring about its own sustainable Green Revolution – or Ever Green Revolution – we need to work together to strengthen our collaboration, work together more on strategic partnerships that are focused on the special needs of small farmers, all with a view to raising the productivity and profitability of Africa’s farm sector. We need more South-South learning and sharing of experiences.  This is an area where our host, the Chinese Academy of Agricultural Sciences (CAAS) and Brazil’s EMBRAPA can play a signal role in bringing about the new partnerships needed for Africa’s agricultural sector to thrive.  China’s successes in the Loess Plateau and Brazil’s transformation of the cerrado provide valuable lessons of experience. The good news is that change is happening, as more and more African countries are recognizing the latent power of their agricultural sector in delivering sustainable reduction in poverty. In 2003, 53 African countries agreed to work together to scale-up agricultural investments, strengthen planning and programming, expanding evidence-based policy making and improving coordination among external partners.  The Comprehensive Africa Agricultural Development Program (CAADP) was born with the blessings of the African Union Commission. Today, CAADP at its tenth anniversary has achieved noteworthy successes.17 African countries have met, or surpassed the CAADP target of 6  percent agricultural growth40 African countries received CAADP support to help them achieve their agriculture and food security goals.CAADP has enabled systems for African leadership, collective action and peer review.Record high inflows of ODA to African agriculture have been achieved – US$ 4 billion annually in 2010 and 2011. One of the most important outcomes of CAADP-led processes has been donor harmonization and alignment.  CAADP is an Africa-focused, African-led, African-owned and African-implemented program.  One of the most important developments for which CAADP can be given credit is that development partners – including the World Bank – have aligned their strategies to support CAADP priorities. As we look forward to a new era of scientific collaboration, I am sure that the CGIAR which led the Green Revolution can now rededicate itself to bringing the best of modern science for the benefit of African farmers.  I would like to call upon this great assembly to dedicate ourselves to this important task of improving African agriculture.  I am sure it can be done with your support.  There has never been a better time to change the trajectory of African agriculture through a focus on greater productivity, more equity, and more sustainable farming practices.  Thank you. ","master_date":"2013-06-05T16:44:00Z","master_date_srt":"2013-06-05T16:44:00Z","master_recent_date_srt":"2013-06-05T16:44:00Z","master_recent_date":"2013-06-05T16:44:00Z","masterregion_exact":"Africa","short_description":"In a speech on June 4 in Beijing, China, Makhtar Diop urged Chinese and Brazilian partners to work together to improve productivity and profitability for Africa's small farmers.","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":" Mr. Chairman, Distinguished Guests, Ladies and Gentlemen, thank you for the honor of your invitation.  This is my second visit to China since being appointed Vice President for Africa at the World Bank.  I look forward to nurturing the China-World Bank partnership particularly on today’s vital topic: mobilizing agricultural science and technology for ending poverty, in Africa and beyond.  We meet at a critical time in the global economy.  Even as industrialized countries are suffering from anemic growth rates, Sub-Saharan Africa’s 49 countries are booming with growth rates of five percent and more.  Demand for food is rising globally, and food prices are more volatile.  Adding to this complex mix, we know that climate change will impact Africa’s agricultural potential, particularly in dry land areas that are home to a majority of poor people. As you may be aware, under the leadership of our new President, Jim Yong Kim, the World Bank has set new goals for ending poverty and achieving shared prosperity in our lifetime. Reducing the percentage of people living on less than $1.25 a day to three percent by 2030 and increasing the incomes of the bottom 40 percent of the population in every developing country will require a thriving agricultural sector that provides jobs, food and income security, as well as greater, more open market access and trade, including within Africa. I am here to talk about Africa and its unrealized – but achievable – potential in the farm sector. China feeds nearly 20 percent of the human family.  Africa can and must benefit from the wealth of China’s experiences in sustainable food production and rural transformation.  Nowhere is the need for an agricultural transformation greater than in Africa’s dryland areas.  In the Sahel sub-region, over 10 million people are facing chronic food insecurity.  In the Horn of Africa, over 8.32 million people are facing a stressed or crisis phase of food insecurity.  We are taking a strategic, regional approach to tackling these challenges focusing on reducing vulnerability and increasing resilience, and promoting greater economic opportunity and integration. The World Bank is committed to making a positive difference in Africa’s farm economy. Given the importance of the agricultural sector, the World Bank’s Action Plan commits us to providing $8-$10 billion annually. A significant portion of this, up to one-third, is being directed to the specific needs of Africa’s farm sector. We have scaled-up the World Bank’s agricultural program in Africa quantitatively and qualitatively.   Notably, we are:Expanding our lending program, from US$0.4 billion in 2008 to US$1.2 billion a year.  In addition to budget support and traditional investment projects, these investments will support public-private partnerships and larger, sub-regional operations that generate economies of scale and transformational impact.Working to boost Africa’s irrigated area, from 20 percent currently to 40 percent by 2030.  This goal will require US$40 billion, with the Bank potentially financing one-quarter of the investment needed.Moving from modest and fragmented pilot efforts to bold, systematic projects in land administration.  It is time for a big push to scale-up best practices, and we aim to deliver at least two new land administration projects per year, US$150 million each, leading to at least US$1.5 billion over 10 years.  A target worth striving for would be to reduce time required for registering property from 65 days to 30.Working to increase market access, remove trade barriers, and improve competitiveness to double food trade in ten years.  We want to be ambitious, improve trade, transport, infrastructure and food safety systems with a 10-year target of cutting by half the costs of bringing produce to market. These are some examples of how we can achieve catalytic, transformational impact in Africa’s farm economy.  Overall, the focus of our investments will be on achieving the big prize of truly transformational change by: raising agricultural productivity particularly in dryland areas, linking farmers to markets, strengthening value chains, reducing risk and vulnerability, promoting gender equality and enhancing the environmental contribution of agriculture in reducing greenhouse gas emissions. To help meet these goals, we believe that Climate Smart Agriculture (CSA) offers tremendous hope of achieving the triple wins of increasing farmers’ incomes, helping them adapt to future climatic changes, and contributing to the battle against global warming.  It is well known in development literature that the Green Revolution which transformed food production in Asia and Latin America bypassed Africa. We are here to change the trajectory of Africa’s future agricultural development. For Africa to bring about its own sustainable Green Revolution – or Ever Green Revolution – we need to work together to strengthen our collaboration, work together more on strategic partnerships that are focused on the special needs of small farmers, all with a view to raising the productivity and profitability of Africa’s farm sector. We need more South-South learning and sharing of experiences.  This is an area where our host, the Chinese Academy of Agricultural Sciences (CAAS) and Brazil’s EMBRAPA can play a signal role in bringing about the new partnerships needed for Africa’s agricultural sector to thrive.  China’s successes in the Loess Plateau and Brazil’s transformation of the cerrado provide valuable lessons of experience. The good news is that change is happening, as more and more African countries are recognizing the latent power of their agricultural sector in delivering sustainable reduction in poverty. In 2003, 53 African countries agreed to work together to scale-up agricultural investments, strengthen planning and programming, expanding evidence-based policy making and improving coordination among external partners.  The Comprehensive Africa Agricultural Development Program (CAADP) was born with the blessings of the African Union Commission. Today, CAADP at its tenth anniversary has achieved noteworthy successes.17 African countries have met, or surpassed the CAADP target of 6  percent agricultural growth40 African countries received CAADP support to help them achieve their agriculture and food security goals.CAADP has enabled systems for African leadership, collective action and peer review.Record high inflows of ODA to African agriculture have been achieved – US$ 4 billion annually in 2010 and 2011. One of the most important outcomes of CAADP-led processes has been donor harmonization and alignment.  CAADP is an Africa-focused, African-led, African-owned and African-implemented program.  One of the most important developments for which CAADP can be given credit is that development partners – including the World Bank – have aligned their strategies to support CAADP priorities. As we look forward to a new era of scientific collaboration, I am sure that the CGIAR which led the Green Revolution can now rededicate itself to bringing the best of modern science for the benefit of African farmers.  I would like to call upon this great assembly to dedicate ourselves to this important task of improving African agriculture.  I am sure it can be done with your support.  There has never been a better time to change the trajectory of African agriculture through a focus on greater productivity, more equity, and more sustainable farming practices.  Thank you. ","date":"2013-06-05T16:44:00Z","contenttype":"Speeches and Transcripts"},"_83ef007bb2a2e80fce732524574012d2ed6e08ed":{"id":"83ef007bb2a2e80fce732524574012d2ed6e08ed","title":"World Bank Africa Region Vice President Makhtar Diop – Opening the World Bank – IMF Springs Meetings 2013 Event: Public Private Partnerships in Africa – Turning the Opportunity into Transactions","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2013/04/19/makhtar-diop-on-public-private-partnerships-in-africa","descr":"\"Clearly, the time is at hand to make a significant effort to increase the use of PPPs in Africa...\"","keywd":"subject:infrastructure and growth,regions:Africa","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","topic":"Infrastructure And Growth","cqpath":"/content/wb-home/en/news/speech/2013/04/19/makhtar-diop-on-public-private-partnerships-in-africa","regionname":"Africa","wcmsource":"cq5","content":" I am delighted to open this 4th roundtable. Over the last couple of years, we have organized several important meetings to establish a strategic dialogue platform between the private and public sectors. This meeting will continue the dialogue between African delegations and investors in public private partnerships or PPPs.  Recent successes As we all know, Africa’s economies are going through a period of unprecedented growth and development.  Excluding South Africa, sub-Saharan Africa grew at nearly 6 percent in 2012 (5.8 percent), consolidating more than a decade of growth at rates above 5 percent, even taking into account the dip that occurred in 2009 because of the global crisis. Africa has been growing at these rates due to an increase in commodity prices but also due to improvements in governance and in macroeconomic management.  These improvements have also helped make Africa a destination for investment.  Foreign direct investment is augmenting Africa’s own, quite low, savings levels and leading to increases in African investment which has grown from less than 16 percent of GDP from 1997 to over 22 percent last year. Addressing challenges The key challenge for African Governments is to convert this growth into jobs – this requires a focus on labor intensive sectors including agriculture and agribusiness, light manufacturing and services.  There are many impediments in achieving higher growth and job creation. I want to speak today about two of these i.e. the inadequate supply of infrastructure and the increased role that the private sector needs to play in helping to address them. Inadequate supply of infrastructure The region has registered a persistent and worrisome infrastructure deficit which has had a significant economic cost:  For example, the economic cost of power outages in South Africa, Uganda, and Malawi is estimated to be at above 5 percent of GDP per year.  Thirty countries in Africa face regular interruptions of power supply obliging private firms to invest in costly power generators. While Africa has about 80 GW of installed generation capacity, it should be installing 1GW of power generation capacity every two months whereas only 1 GW is added every year.  Yet, Africa has 45 GW in feasible hydropower , but the uneven distribution of resources and the distance separating hydropower points from economic centers are preventing the hydropower potential from being developed. There is clearly a need for regional solutions. Recognizing this need, the World Bank has been working with our member countries in Africa to develop and implement some transformational projects, particularly in power.  The gas fired IPP projects in Nigeria and the $4.5 billion Hydropower project in Mphanda Nkuwa in Mozambique are two examples.  Similarly, infrastructure may also be needed in specific sectors.  For example, improving agricultural productivity requires investments in irrigation along with other infrastructure needs such as rural roads, storage, cold chains, and logistics terminals. While infrastructure is urgently required, public finances are quite constrained. Albeit the increasing FDI in commodity business, public spending in infrastructure investments as a percentage of GDP has decreased from around 4 percent between 1980-85 to 1.6 percent between 2001-2008.  Private investment needs to be harnessed to augment the current low level of public spending in infrastructure through the use of Public-Private-Partnerships.  PPPs are not new for African countries. A number of countries have successfully closed flagship PPP projects. However, the move to a more programmatic use of PPPs to bridge infrastructure gaps has been more difficult to achieve. Only 5 percent of the infrastructure in Africa is implemented through PPP –the lowest performance among regions globally. I think it would be useful for the meeting today to discuss how to achieve this more programmatic approach to PPPs by improving outcomes in three key areas:Strengthening the enabling environment for PPPs.  The development of a policy framework and its implementation are key requirements.  However, ensuring that public procurement is done in a transparent manner and that bilateral negotiations on unsolicited bids are the exception rather than the rule has been a challenge.  It would be useful to discuss how the implementation of the policy framework could be further strengthened.Developing a robust pipeline of projects that can be taken to the market. Although there has been increasing support from development partners for project preparation in the recent past, not enough projects selected for PPPs are reaching financial closure. It would be useful to discuss what would make these projects more bankable and attractive to private investors.Mobilizing long term private capital. While there is significant interest from investors in Africa and beyond, there are still challenges of marrying the risk appetite of institutional investors (such as pension funds) with the risks inherent in infrastructure development.  It would be useful to discuss how to better structure transactions (particularly during the risky construction phase) in order to better allocate risks to those investors most willing and able to bear and manage such risks.  Closing remarks Clearly, the time is at hand to make a significant effort to increase the use of PPPs in Africa. This is going to need better coordination and I would urge that we use this meeting today and our platform for collaboration to engage in an active and concrete dialogue between countries, project developers and potential investors together with regional organizations and development partners. On the World Bank Group’s side, we are ready to play our role in enhancing the impact of PPPs and to work towards the next stage of African development, a new set of opportunities for African investors, and a true transformation of Africa. Thank you. ","content_1000":" I am delighted to open this 4th roundtable. Over the last couple of years, we have organized several important meetings to establish a strategic dialogue platform between the private and public sectors. This meeting will continue the dialogue between African delegations and investors in public private partnerships or PPPs.  Recent successes As we all know, Africa’s economies are going through a period of unprecedented growth and development.  Excluding South Africa, sub-Saharan Africa grew at nearly 6 percent in 2012 (5.8 percent), consolidating more than a decade of growth at rates above 5 percent, even taking into account the dip that occurred in 2009 because of the global crisis. Africa has been growing at these rates due to an increase in commodity prices but also due to improvements in governance and in macroeconomic management.  These improvements have also helped make Africa a destination for investment.  Foreign direct investment is augmenting Africa’s own,","displayconttype":"Speeches and Transcripts","originating_unit":"EXTCC","originating_unit_exact":"EXTCC","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Speeches and Transcripts","node_id":"83ef007bb2a2e80fce732524574012d2ed6e08ed","wn_title":"World Bank Africa Region Vice President Makhtar Diop – Opening the World Bank – IMF Springs Meetings 2013 Event: Public Private Partnerships in Africa – Turning the Opportunity into Transactions","wn_desc":" I am delighted to open this 4th roundtable. Over the last couple of years, we have organized several important meetings to establish a strategic dialogue platform between the private and public sectors. This meeting will continue the dialogue between African delegations and investors in public private partnerships or PPPs.  Recent successes As we all know, Africa’s economies are going through a period of unprecedented growth and development.  Excluding South Africa, sub-Saharan Africa grew at nearly 6 percent in 2012 (5.8 percent), consolidating more than a decade of growth at rates above 5 percent, even taking into account the dip that occurred in 2009 because of the global crisis. Africa has been growing at these rates due to an increase in commodity prices but also due to improvements in governance and in macroeconomic management.  These improvements have also helped make Africa a destination for investment.  Foreign direct investment is augmenting Africa’s own, quite low, savings levels and leading to increases in African investment which has grown from less than 16 percent of GDP from 1997 to over 22 percent last year. Addressing challenges The key challenge for African Governments is to convert this growth into jobs – this requires a focus on labor intensive sectors including agriculture and agribusiness, light manufacturing and services.  There are many impediments in achieving higher growth and job creation. I want to speak today about two of these i.e. the inadequate supply of infrastructure and the increased role that the private sector needs to play in helping to address them. Inadequate supply of infrastructure The region has registered a persistent and worrisome infrastructure deficit which has had a significant economic cost:  For example, the economic cost of power outages in South Africa, Uganda, and Malawi is estimated to be at above 5 percent of GDP per year.  Thirty countries in Africa face regular interruptions of power supply obliging private firms to invest in costly power generators. While Africa has about 80 GW of installed generation capacity, it should be installing 1GW of power generation capacity every two months whereas only 1 GW is added every year.  Yet, Africa has 45 GW in feasible hydropower , but the uneven distribution of resources and the distance separating hydropower points from economic centers are preventing the hydropower potential from being developed. There is clearly a need for regional solutions. Recognizing this need, the World Bank has been working with our member countries in Africa to develop and implement some transformational projects, particularly in power.  The gas fired IPP projects in Nigeria and the $4.5 billion Hydropower project in Mphanda Nkuwa in Mozambique are two examples.  Similarly, infrastructure may also be needed in specific sectors.  For example, improving agricultural productivity requires investments in irrigation along with other infrastructure needs such as rural roads, storage, cold chains, and logistics terminals. While infrastructure is urgently required, public finances are quite constrained. Albeit the increasing FDI in commodity business, public spending in infrastructure investments as a percentage of GDP has decreased from around 4 percent between 1980-85 to 1.6 percent between 2001-2008.  Private investment needs to be harnessed to augment the current low level of public spending in infrastructure through the use of Public-Private-Partnerships.  PPPs are not new for African countries. A number of countries have successfully closed flagship PPP projects. However, the move to a more programmatic use of PPPs to bridge infrastructure gaps has been more difficult to achieve. Only 5 percent of the infrastructure in Africa is implemented through PPP –the lowest performance among regions globally. I think it would be useful for the meeting today to discuss how to achieve this more programmatic approach to PPPs by improving outcomes in three key areas:Strengthening the enabling environment for PPPs.  The development of a policy framework and its implementation are key requirements.  However, ensuring that public procurement is done in a transparent manner and that bilateral negotiations on unsolicited bids are the exception rather than the rule has been a challenge.  It would be useful to discuss how the implementation of the policy framework could be further strengthened.Developing a robust pipeline of projects that can be taken to the market. Although there has been increasing support from development partners for project preparation in the recent past, not enough projects selected for PPPs are reaching financial closure. It would be useful to discuss what would make these projects more bankable and attractive to private investors.Mobilizing long term private capital. While there is significant interest from investors in Africa and beyond, there are still challenges of marrying the risk appetite of institutional investors (such as pension funds) with the risks inherent in infrastructure development.  It would be useful to discuss how to better structure transactions (particularly during the risky construction phase) in order to better allocate risks to those investors most willing and able to bear and manage such risks.  Closing remarks Clearly, the time is at hand to make a significant effort to increase the use of PPPs in Africa. This is going to need better coordination and I would urge that we use this meeting today and our platform for collaboration to engage in an active and concrete dialogue between countries, project developers and potential investors together with regional organizations and development partners. On the World Bank Group’s side, we are ready to play our role in enhancing the impact of PPPs and to work towards the next stage of African development, a new set of opportunities for African investors, and a true transformation of Africa. Thank you. ","master_date":"2013-04-19T15:25:00Z","master_date_srt":"2013-04-19T15:25:00Z","master_recent_date_srt":"2013-04-19T15:25:00Z","master_recent_date":"2013-04-19T15:25:00Z","masterregion_exact":"Africa","short_description":"\"Clearly, the time is at hand to make a significant effort to increase the use of PPPs in Africa...\"","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":" I am delighted to open this 4th roundtable. Over the last couple of years, we have organized several important meetings to establish a strategic dialogue platform between the private and public sectors. This meeting will continue the dialogue between African delegations and investors in public private partnerships or PPPs.  Recent successes As we all know, Africa’s economies are going through a period of unprecedented growth and development.  Excluding South Africa, sub-Saharan Africa grew at nearly 6 percent in 2012 (5.8 percent), consolidating more than a decade of growth at rates above 5 percent, even taking into account the dip that occurred in 2009 because of the global crisis. Africa has been growing at these rates due to an increase in commodity prices but also due to improvements in governance and in macroeconomic management.  These improvements have also helped make Africa a destination for investment.  Foreign direct investment is augmenting Africa’s own, quite low, savings levels and leading to increases in African investment which has grown from less than 16 percent of GDP from 1997 to over 22 percent last year. Addressing challenges The key challenge for African Governments is to convert this growth into jobs – this requires a focus on labor intensive sectors including agriculture and agribusiness, light manufacturing and services.  There are many impediments in achieving higher growth and job creation. I want to speak today about two of these i.e. the inadequate supply of infrastructure and the increased role that the private sector needs to play in helping to address them. Inadequate supply of infrastructure The region has registered a persistent and worrisome infrastructure deficit which has had a significant economic cost:  For example, the economic cost of power outages in South Africa, Uganda, and Malawi is estimated to be at above 5 percent of GDP per year.  Thirty countries in Africa face regular interruptions of power supply obliging private firms to invest in costly power generators. While Africa has about 80 GW of installed generation capacity, it should be installing 1GW of power generation capacity every two months whereas only 1 GW is added every year.  Yet, Africa has 45 GW in feasible hydropower , but the uneven distribution of resources and the distance separating hydropower points from economic centers are preventing the hydropower potential from being developed. There is clearly a need for regional solutions. Recognizing this need, the World Bank has been working with our member countries in Africa to develop and implement some transformational projects, particularly in power.  The gas fired IPP projects in Nigeria and the $4.5 billion Hydropower project in Mphanda Nkuwa in Mozambique are two examples.  Similarly, infrastructure may also be needed in specific sectors.  For example, improving agricultural productivity requires investments in irrigation along with other infrastructure needs such as rural roads, storage, cold chains, and logistics terminals. While infrastructure is urgently required, public finances are quite constrained. Albeit the increasing FDI in commodity business, public spending in infrastructure investments as a percentage of GDP has decreased from around 4 percent between 1980-85 to 1.6 percent between 2001-2008.  Private investment needs to be harnessed to augment the current low level of public spending in infrastructure through the use of Public-Private-Partnerships.  PPPs are not new for African countries. A number of countries have successfully closed flagship PPP projects. However, the move to a more programmatic use of PPPs to bridge infrastructure gaps has been more difficult to achieve. Only 5 percent of the infrastructure in Africa is implemented through PPP –the lowest performance among regions globally. I think it would be useful for the meeting today to discuss how to achieve this more programmatic approach to PPPs by improving outcomes in three key areas:Strengthening the enabling environment for PPPs.  The development of a policy framework and its implementation are key requirements.  However, ensuring that public procurement is done in a transparent manner and that bilateral negotiations on unsolicited bids are the exception rather than the rule has been a challenge.  It would be useful to discuss how the implementation of the policy framework could be further strengthened.Developing a robust pipeline of projects that can be taken to the market. Although there has been increasing support from development partners for project preparation in the recent past, not enough projects selected for PPPs are reaching financial closure. It would be useful to discuss what would make these projects more bankable and attractive to private investors.Mobilizing long term private capital. While there is significant interest from investors in Africa and beyond, there are still challenges of marrying the risk appetite of institutional investors (such as pension funds) with the risks inherent in infrastructure development.  It would be useful to discuss how to better structure transactions (particularly during the risky construction phase) in order to better allocate risks to those investors most willing and able to bear and manage such risks.  Closing remarks Clearly, the time is at hand to make a significant effort to increase the use of PPPs in Africa. This is going to need better coordination and I would urge that we use this meeting today and our platform for collaboration to engage in an active and concrete dialogue between countries, project developers and potential investors together with regional organizations and development partners. On the World Bank Group’s side, we are ready to play our role in enhancing the impact of PPPs and to work towards the next stage of African development, a new set of opportunities for African investors, and a true transformation of Africa. Thank you. ","date":"2013-04-19T15:25:00Z","contenttype":"Speeches and Transcripts"},"_210b0c7d50eebe3c239365a247dd63bcd0156dcb":{"id":"210b0c7d50eebe3c239365a247dd63bcd0156dcb","title":"Press Conference with WBG President Jim Yong Kim, S.African Finance Minister Pravin Gordhan, and WB VP for Africa Makhtar Diop","countrycode":"ZA","country":"South Africa","country_exact":"South Africa","countrycode_exact":"ZA","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2012/09/06/press-conference-wbg-president-jim-yong-kim-safrican-finance-minister-pravin-gordhan-wb-vp-africa-makhtar-diop","count":"South Africa","descr":"World Bank Group President Jim Yong Kim and South African Finance Minister Pravin Gordhan addresses the press at the end of Dr Kim's visit.","keywd":"People:Jim Yong Kim,country:South Africa,regions:Africa,subject:poverty","lang":{"0":{"cdata!":"English"}},"admreg":"Africa","topic":"Poverty","cqpath":"/content/wb-home/en/news/speech/2012/09/06/press-conference-wbg-president-jim-yong-kim-safrican-finance-minister-pravin-gordhan-wb-vp-africa-makhtar-diop","regionname":"Africa","wcmsource":"cq5","content":" MODERATOR:  Good afternoon.  Thank you all for coming. My name is Sarwat Hussain] from the World Bank Africa region communications.  We will begin the [unclear] from Minister Gordhan followed by Mr. Jim Kim, President of the World Bank Group.  The press conference is on the record, so let's get started.  Mr. Minister, you have the floor. MINISTER GORDHAN:  I thought we had some speakers [laughter].  Well, good afternoon to all of you, and it gives me great pleasure to, in your presence, welcome Dr. Kim to South Africa and to congratulate him on his appointment and, more importantly, to thank him for making South Africa and the African continent one of the first destinations of your overseas vists as the President of the World Bank.                 In the course of the morning, the President of the World Bank has met with the Treasury team.  He has met with about eight Ministers and Deputy Ministers, who gave him insights into our aspirations which are contained in the National Development Plan, the kind of work that we are doing and some of the challenges that we face in basic education, in health, in water, in environment, in rural development, in science and technology, and, in particular, innovation, and with respect to small businesses in South Africa, including the infrastructure program that the President is championing in this country.                 The World Bank is a very important multilateral institution, and we, in our discussions, have confirmed our faith mutually in the multilateral system, recognizing at the same time that for the multilateral system to be inclusive and for it to be fully representative, it, itself, needs to transform itself so that it truly can say that it has democratized.                 We know that democratization processes are long processes generally, that we are very happy with and impressed with the vision that Dr. Kim has for the World Bank and, in particular, for his role.  We fully support his stance on social justice, the importance of eradicating poverty, and the importance of inclusive growth across the globe.  Today the world is challenged, whether we are in developed countries, emerging markets, or middle-income countries like South Africa, by the crucial question of, or co-questions of inclusive growth, of employment, particular for young people, and for reducing poverty and inequality in our society, be that in developed countries or developing countries.                 We are also pleased with the fact that he endorses the importance of the role of middle-income countries in the future of the World Bank.  This is important because South Africa, as a middle-income country, thinks that it is not only the big economies, be they emerging or developed, or the smaller economies in the form of the low-income countries, that should attract the assistance and support of the World Bank.  But equally, middle-income countries, particularly on the African continent and across the globe, can play an important innovation role, can play an important catalytic role, and play an important role in supporting development, particularly in subregions of a continent and, in South Africa's case, in the Sub-Saharan area generally and SADC more specifically.                 We expect that the World Bank Group’s bold, and he would, I'm sure, frankly put it, activist leadership - and that's one common ground we have between us, we both are quite happy being described as activists - will introduce a new era in the World Bank's operation, which will ensure that the formidable capabilities, knowledge and expertise, apart from the management that the World Bank has, is made available to middle-income countries and, indeed, others that require their assistance in a way in which each of the countries of the world can say that we are developing more effective systems, we are focusing on ensuring that our economies grow but they grow in a way in which social justice is increasingly at the center of it, and that they grow in a way in which we solve the problems of poverty and inequality in our society as well.                 We have shared our aspirations in terms of the infrastructure projects in South Africa, and I'm confident that the capabilities that are available within the World Bank will be made available both to the continent more generally and certainly in respect of South Africa's three billion rand aspirations in terms of infrastructure [unclear] on South African soil.                 Let me conclude by saying that Dr. Kim will have lots of high expectations placed on his shoulders, but they are fascinating opportunities for, as he would put it, South Africa to become a laboratory of good practice and innovation.  And on the government's side, as we begin to grapple and continue to grapple with issues such as economic reform so that our economies are more inclusive and more job creating and in the rest of the continent and in South Africa that are industrialized, that we will be able to also get support from the World Bank in that particular regard as well.                 One of the areas of the World Bank, there's been some fascinating work on, which we haven't too much of an opportunity to talk to Dr. Kim about, is studying economic dynamics in townships in South Africa, and we see this as an important future direction for possibilities for increasing economic growth and job creation and widening participation in economic activity in the South African economy for more of its people.                 I think we've laid a very constructive basis for cooperation with the new senior administration in the World Bank, and we look forward to working with Dr. Kim and his colleagues as we take South Africa into a period in which we'll be defining a new country strategy with the World Bank, which will attempt to place at its center the National Development Plan and the various programs that different government departments are working on.                 Thank you very much.                 MODERATOR:  Thank you.                The President of the World Bank Group.                 Thank you.                 DR. KIM:  Thank you very much. It's a great honor for me to be back in South Africa.  Prior to being President of World Bank, I worked with many colleagues in Lesotho, in Malawi and Rwanda.  And when I was director of the HIV program at the World Health Organization in 2003 to 2006, I had many occasions to come here to South Africa.                I'm here on my very first trip abroad as President of the World Bank because of my enormous respect for this country, for its people, and out of a realization that South Africa's success is important for the region, for the continent, and for the world.  South Africa is 40 percent of the African economy.  But most importantly, the government that is committed to both social inclusion and growth is leading the way and providing us another example of what we think needs to happen in the world.                 The World Bank has been very clear.  Gender and equity is critical for sustainable economic development.  A focus on youth, and especially good jobs for youth, is critical for sustainable economic development.                 And we believe, along with the South African government, that social inclusion and economic growth, especially in the private sector, are not mutually exclusive.                 And so we have an enormous stake in doing everything we can to ensure success of South Africa in achieving those goals, and that's why I'm here.                 I was very pleased and honored that I was able to meet with so many Ministers.  In the discussions, I was deeply impressed with the level of analysis that the Ministers had been doing of their own success.  We had a very frank discussion.  And the theme that came out of the discussion was extremely encouraging to me, and that theme was we will experiment with policy--excuse me, \"experiment\" is the wrong word.  We have good policy.  We've thought long and hard about the policies we've put in place, and now we are very focused on implementing, to make sure that the policies work and that they work for everybody.  And so we had a very long and intense discussion about how the World Bank and South Africa could work together on improving implementation and delivery.                 Now, this is the problem of every single country in the world.  Many countries have good policies.  Every single country in the world falls short at some point in terms of their implementation and delivery.                 The point that I wanted to make to the Honorable Minister and his colleagues is that the World Bank is full of wonderful practitioners who have extensive academic training, but who also have the experience of working in countries, working with clients, trying to improve their implementation and delivery.                 I was just extremely encouraged that we were exactly on the same page in terms of how we're going to structure our relationship.  For us, being deeply engaged in the work of South Africa is not--it is on the one hand focused on our, perhaps, ability to bring maybe some experience from other countries, some expertise.  But even more importantly, we are here to learn.  South Africa is the place where many innovations have happened, and we want to deepen our relationship with South Africa because we want to learn from the innovations and the achievements that have happened here so that we can share them not only across the continent but with the rest of the world.                 Finally, I was very honored as well to meet with President Zuma, and we spoke also about the importance of implementation and delivery.  President Zuma mentioned many different areas where he would like to cooperate with the World Bank, and one of the areas of course is health.                 I'm a physician.  I'm an anthropologist.  I worked on health care programs in Africa and in many other parts of the developing world, and once again I think that the special contribution of the World Bank may very well be that we are very good at thinking about how infrastructure and systems can impact health care delivery and health outcomes.  Moreover, we can bring experiences from other countries, other regions that might be helpful to the South African government.                 So I would like to conclude by saying that I was thrilled by my visit today.  I am here for a very clear reason South Africa is important for the entire world.  We have an enormous stake in success here, and we've laid the groundwork for, I think, a deepening collaboration that we hope will bring many good things to the people of South Africa.  But perhaps even more importantly, through our learning here, we can bring the lessons of South Africa to other countries as well.                 Thank you.                 MODERATOR:  Thank you.                 We now open up for questions.  Please identify yourself when asking a question and keep it brief.                 Mariam?                 QUESTION:  Thank you.  I have two questions actually.  One is for Minister Gordhan.  You mentioned that South Africa will be benefiting from the support of the World Bank in its infrastructure program.  How will this support come?  Will there be any financial support or will it just be logistical?                 And my second question is for Mr. Diop.  The World Bank said in a previous report that growth in South Africa has to be more inclusive to eradicate poverty.  Does the World Bank have any ideas on how to make growth more inclusive?                 MODERATOR:  Thank you, Mariam [phonetic].                 We can take another one.  Yes, go ahead. QUESTION:  Hi.  Dan [Unclear] from Bloomberg.                 I have a question for Dr. Kim.  Dr. Kim, in the last week, I think you have been listening—you said you have been listening a lot to your staff, and obviously coming into the job fairly new; so are you planning to take the Bank into a new direction?  Are there areas you are going to focus on and other areas you are going to focus less on?                 You also hinted or mentioned that you might be interested in technical assistance to developed economies such as Greece.  Has there been any movement in that direction?                 Thanks. MODERATOR:  Thank you, Dan.                 Go ahead, please. QUESTION:  [Unclear] criticism of the World Bank funding of the [unclear] because of the technology it uses.  Going forward, looking at the infrastructure development plan, would the World Bank support coal or fossil fuel-based power generation going forward, or would you look at nuclear?  Can you give us an indication of your thinking? MODERATOR:  Thank you.  We’ll take that first set of three; so, Minister Gordhan? DR. KIM:  Let me start with new directions.  One of the things that has been so striking to me about my first few months—I have been walking the halls, meeting many, many people inside the Bank—there is enormous consensus around the fundamental mission of the Bank.  Our mission is in some ways based—we are here to end poverty and to boost prosperity.  And there are a lot of different ways of doing that.                 I think there is also a growing consensus around just how to do that.  For example, the World Development Report this year is focused on jobs, and we know that in the formal sector, 90 percent of jobs in the formal sector come from the private sector.                So, here in South Africa, for example, our largest efforts are through the International Finance Corporation, our private sector wing.  So I would never dare to change a mission as powerful and clear as ending poverty and boosting prosperity.  That’s a wonderful mission to have.                 In terms of how we work, we are having that conversation in an intensive way right now:  Are we organized in a way that will allow us—and I use this term with my colleagues at the World Bank—are we organized so that we can then we can bend the arc of history that we can end poverty sooner than [unclear], that we can boost prosperity even more effectively.  And what is the nature of our relationships with our colleagues in the multilateral world?  How can we focus ourselves ever more effectively on that mission?                 And I tell you, everywhere I go in the Bank—I go to the Treasury, and the folks who manage billions of dollars of money every day tell me that they are most proud of their work in helping central banks in the poorest countries manage their assets.                 So, in my view, everyone in the Bank is focused around this issue, and so we just need to figure out a way to be the most effective organization we can be in ending poverty and boosting prosperity.                 In terms of the high-income countries, you know, we feel that in many areas, our expertise could be relevant to any country.  For example, we are especially good at analyzing social sector strategies.  We are very good at being able to say, Look, you know, we have got a lot of evidence over the years, and we have found that these kinds of social sector strategies don’t really help much, usually, and these kinds, which you are not investing in, actually can be very helpful.                 We feel that that kind of advice can be useful for lots of different countries and also with respect to work that the International Finance Corporation, the IFC does, we also think we have a lot of advice in how to improve the environment for especially [unclear] income countries.  We feel we have that expertise and [unclear].                 Of course, we have to be asked before we go in and offer advice, and I simply want to make clear that we stand ready to offer that advice.                 Coal is a difficult issue, and the project here in South Africa was one in which we have had extensive discussions among all of the [unclear] and interested parties.                 And I am a person—I am in my job because I believe in multilateralism.  And multilateralism means that you have to quietly listen to the needs and the desires of member countries and weigh that against lots of other concerns.                 So South Africa was very clear.  It needed energy in order for the economy to grow—in order for the economy to grow and provide good jobs so that people can [unclear] poverty you need energy.  And there was a very strong sense that this clean coal project was the way to go.                 So right now, we are working with the government on many clean energy projects, and we are very happy to be able to do that.  But my job is one in which we have to balance a number of different priorities.                 We all believe that we have got to mitigate climate change.  We all believe that we need a sustainable future in terms of the environment.  But we also know that energy is required in order to lift people out of poverty and to grow the economy.                 So every day in my job, I am balancing these different priorities, and that is what we will continue to do. MINISTER GORDHAN:  Let me add to that and say that we have got to recognize that energy has a major constraint on growth potential, so the ability to invest in clean coal, use the most appropriate technology to reduce carbon emissions as much as possible, and still support economic growth and increase our potential for growth is a very important project for the next five to ten years.                 At the same time, you all know that we have an Integrated Resource Plan, that renewables play an important part in that plan, as potentially does nuclear, and in the longer term, we have made very clear indications that we want to shift from coal but in a way in which it is pragmatic, it does not compromise our ability to grow the economy and create jobs, and at the same time demonstrates a commitment to renewables.                 Mariam, your question on how we will benefit from our relationship with the World Bank in terms of infrastructure, that is something that, as we clarify our own needs and look at what the World Bank has to offer both in terms of, not so much financing, unless we absolutely need it, but the kind of expertise that Dr. Kim talks about.                 What we do need in South Africa are efficient delivery systems so that intentions and policies begin to be converted very efficiently into actions on the ground that make a positive impact on our economy.  And much of our infrastructure, as you know, is on the economic infrastructure side and making quicker progress in respect to implementation in respect to those will make [unclear] as will sequencing those projects correctly, making sure that we get the right levels of coordinates and integration amongst those projects and, as we also know, our mission is to develop a 10- to 20-year pipeline of projects so that we have a continuum in terms of the way in which infrastructure develops.  All of these things are currently under discussion and development in the Presidential Infrastructure Coordinating Commission.                 So, as we develop this relationship and draw on the kinds of comparative experiences that the World Bank has to offer, we will see how that can enrich the capabilities that that may have within South Africa itself. MODERATOR:  Thank you, Mr. Minister.                 Makhtar? MR. DIOP:  Thank you very much.                 When it comes to inclusive growth, I think that the Honorable Minister has already indicated some of the work we are doing right now linked to the economics, the dynamics, of the country, but I think it is a role that you will have in shaping precisely the policy that the government is already implementing in this area. And the second area is the efficiency of service that it brings.  As you know, the government is allocating a significant amount in the social sectors.  For instance, the level of expenditures in the health sector in South Africa is beyond what you see in a lot of countries, and the government would like to improve the efficiency of those expenditures, and this is one of the specific requests that we received today from Mr. Minister, to see how we can help them, based on the experience of other countries but also based on the reality and the capacity for the local government to deliver the services to accompany [unclear] for the government.                A third dimension is all the work in the cities and how inheriting a situation linked to the type of apartheid, where the economic opportunities are not the same across the country, how we can help unifying  the economic fabric and make sure that the opportunities are geographically well-distributed across the country and what we can do.                 I think that experience exists across the world that we can bring.  One of them is what you are trying to do in the favelas in Brazil, and I know that the government is very interested in looking at some other experiences but also to look at some specific interventions that have been [unclear] here, pilot them, help piloting them and scaling it up when it works.                 So I think we could maybe put on the table all of the targeted programs in conditional cash transfer, which have been something that have helped related to the income inequality in some places in the world, and with the right conditions and the right adaptation to the South African conditions, we could also look at those.                 But it is at the center, really, of our conversation with the government, and the Minister has been very clear that he would like to not only bring the international experience but also to see what has worked in South Africa and export it to other parts of the world. MINISTER GORDHAN:  I think the interesting, if you like, imperfection at which the world finds itself today is the one that is reflected in Dr. Kim’s comments, that social justice and inclusive growth are very closely related, and should be closely related, and that we are one of the few countries—and increasingly, there are going to be more—who are trying to find strategies and policies and actual practical plans in order to work toward this kind of goal.                 This runs against the vein of conventional economics and conventional comments that many of you might be used to, so forgive me for saying so, but I think the important challenge going forward is how we educate the public more broadly but also the policymakers around the globe that unless we see this as a twin package, if you like, and that increasingly, we need to find ways in different countries of practically experimenting, if you like, with this as an ideal, with this as an important objective that we need to work toward, we won’t be able to solve the problems of the world in respect to poverty, inequality, and in particular jobs for young people.                 You will be aware that there was an ILO report yesterday which said that the trend for the next few years is increasingly unemployment among young people.  So we have got to come up with new answers, and we have got to come up with different answers.  And I certainly believe that Dr. Kim’s leadership will make an important contribution toward searching for different answers on the question of inclusive growth; and then, certainly, with the World Bank’s focus on jobs in its Development Report this year, it will start an important policy process that has been discussed within the G20 as well. MODERATOR:  Thank you, Mr. Minister.                 Yes? QUESTION:  This is Jaime Velasquez from the Spanish News Agency.  I just want to know, President, what the World Bank has to say to us about what can be the role of the World Bank in the euro crisis and in order to help some countries like Greece, maybe Spain, that are in need of solutions for [unclear]. MODERATOR:  Thank you.                 Yes—one more question from SABC QUESTION:  [Unclear] on what is going on in the mining, particularly in terms of [unclear] at the moment. MODERATOR:  Thank you. QUESTION:  Just developing it further, what [unclear]. MODERATOR:  Thank you.                 Mr. Minister, do you want to respond to the question on mining? MINISTER GORDHAN:  I think the first person there [unclear]. MODERATOR:  Okay. QUESTION:  Just on the progress that has been made on the new pension plan, could you just give us some idea of was spoken about this week on the new pension plan and where the priority and points of emphasis are going to be placed?  Is it going to be like the [unclear] or are we going to see more emphasis on [unclear] effectiveness of the way we distribute these sorts of [unclear] social infrastructure [unclear].  So, I’d like to just get some—where the points of emphasis are going to be in the new plan and [unclear].  So I'd like to just get some idea where the points of emphasis are going to be in the new plan and where the [unclear 00:30:19.] MINISTER GORDHAN:  I didn’t realize Dr. Kim played rugby, he’s just passed the ball. [Laughter.]                 MINISTER GORDHAN:  [Unclear].  Let me tackle the last question.  The new country plan or country strategy is something that we will initiate now.  It is not a process that has already been initiated.  But certainly, a focus of that would be to find an integrated way and a coordinated way of developing the interaction between the World Bank and South Africa as a whole.                 As you correctly point out, the efficiency of service delivery is certainly a major concern, and if there are lessons that we can learn which would make the resources that we allocate to certain key areas of social services emerge with the data policy of outcome that we currently do, that will certainly be an objective that we have in mind given the kinds of resource constraints that we work with.  But for the rest, I think let's wait for this process to start, and then we can certainly inform you of the way it is going.                 In respect of the rather regrettable and sad events in [unclear] and the mining industry more generally, certainly, we have got to as South Africa understand the complexity of the dynamics that have been unfolding on some of those mines.  The platinum industry has already been under severe pressure because of price issues and demand issues.  And at the same time, we must be assured that, the rest of the mines are working, the bulk of the industry is at work, the bulk of the industry is still exporting to the rest of the world, and its output is being utilized both there and in South Africa itself.  And in that sense, we need to give the employers and employee organizations an opportunity to find each other and to address both the work-related issues and some of the social issues as well, and we hope that globally, in the rest of the world, I hope Dr. Kim as a doctor, a real doctor, has some medication available which will suddenly cure the euro crisis, which will make Spain feel better immediately and which will then increase demand.  [Unclear] our process in South Africa or for some of its raw materials as well.                 Will it impact growth?  I don't think so in any significant way.  But it is important that we communicate to the world that South Africa is still hard at work, and most of it is highly productive and that it is still available for investment opportunities as well.                 Now for the prescription.                 DR. KIM:  Well, as a doctor, I can tell you we have many medicines that can make people feel better, but I don't think it's going to help the euro crisis very much.                 Let me say first of all on the mines, I don't have anything to add to what the Honorable Minister said—but I can tell you that during the discussions, we actually talked about the mines in this perspective.  We talked about the higher incidence of tuberculosis among miners and how that is a problem.  And just to give you a feel for our discussion, we talked very explicitly about the fact that tuberculosis among miners is not a problem of the mine - it is not a problem even of just South Africa.  It is a regional problem because the miners move around.  So we talked specifically about how we might work together to develop a way of providing more effective treatment for miners even when they go home to places like Lesotho during holidays, for example.                 So the mining industry is very important to South Africa, and I think we stand ready to help in organizing, for example, service delivery to miners in a way that will be more effective—and again, with the realization that this is not a medical problem, but it is actually a logistics, systems, regional problem.                 On Greece and Spain, what I said before is really that we have very specific technical expertise that may be of use, and we have offered to provide that technical assistance if the European countries are interested.  Our role is not to infuse large amounts of cash into the European economy.  This is not our role.  Our sister organization, the International Monetary Fund, is much more involved in that area.                 But I do think—well, let me put it this way.  I have great faith in the technical expertise inside the World Bank, and I think the technical expertise that we have around things like social expenditures and creating a good business environment could be useful to some of those countries, but only if they decide that they would like to ask us.                 MINISTER GORDHAN:  If I could just add, on the matter of the euro crisis, we haven't really had too much of an opportunity to talk about that with Dr. Kim.  We still reiterate our own concerns as South Africa and the African countries that this crisis is going on for too long; that there isn't enough and sufficient recognition for the spillover effects of the lack of effectiveness in dealing with the issue of banks in various countries, the issue of debt in the case of certain countries, but most important of all, we are firm believers in the fact that the real focus needs to be, apart from sorting out the banking issue and the debt issues, on how those economies return to growth and how do they play the important role that they do play within the global economy as the second-biggest, if you like, collective economy on the globe as an engine of growth, because both in their own respective countries but also elsewhere in the world, it is developing a clear path toward growth and job creation which will begin to resolve the other issues that impact upon those countries apart from any specific actions that need to be taken in respect of debt and the banking system as a whole.                 Otherwise, we are on a path of increasing declines in growth, increasing the number of jobless people around the globe, and increasing social tensions, both within the European environment but possibly elsewhere as well.  And what we are missing at this point in time is the level of leadership and boldness which will help both that region but, more importantly, the globe as a whole to begin to move on to a new and different kind of growth path.                 MODERATOR:  Thank you.  One last question from [unclear]—and then, I'm sorry, we're out of time.                 QUESTION:  Hi.  My name is Royce Williams from CNBC.  I have heard quite a bit about the programs and sort of grand plans and schemes that are being considered, and it is all novel, and so on.  So does the World Bank, Dr. Kim, have a budget for Africa, and how much is that budget for the year we are talking about [unclear] this year, this financial year?                 MR. DIOP:  Thank you very much.  African countries belong to two windows.  One is IBRD, which is middle-income countries, which South Africa belongs to with a number of countries; and IDA, which is the low-income part of our budget.                 But yearly lending—we will be lending up to mid-November if we include last year at the mid-term of the IDA cycle, which is a three-year cycle.  After a year-and-a-half, we have been lending $10 to $11 billion to the poorest countries in Africa.                 What we believe is that it is not only important to bring the resources, but it is important to leverage the resources.  What we are seeing now is a private sector both internationally and locally which is more and more involved in that [unclear] activity.                 My colleague from the IFC, Bernie, was reminding me today that we are seeing an increasing involvement of the private sector investing in energy and infrastructure in Africa.  IFC, our private sector branch, has realized this year in the low-income countries 40 percent of its investment in infrastructure, to give you an indication of how the private sector in picking up and supporting all of this.                 So we are leveraging resources, and we are working closely with the private sector to be able to meet those needs. In addition, in the conversation that we had with the Minister, there was an idea also that it was important that we continue having the resources to prepare the larger projects that the African Union has defined, particularly in energy.  And we will be [unclear] and really involved in the G20 as one of the voices of the African continent to make sure that in the G20 [unclear] will be realized very soon so that it can accelerate the [unclear.]                But already something is happening.  We just had the first phase of the Inga Project that was financed by the World Bank was taken to our Board recently.  We are moving on the Southern and Eastern African Power [unclear] and [unclear] some dynamic toward that.                 So there is a lot of interest from the private sector.  We are leveraging our resources from the IDA side, and all countries are now looking at new and innovative ways of [unclear] development and [unclear] development.                 DR. KIM:  Thank you.                 Let me just add that I have worked in Africa, and it is one of my absolute top priorities.  That is why, on my very first trip as President of the World Bank, I have come to the African continent.  So you can rest assured that on every level, I am deeply committed to the growth and the success of Africa.  And the reason I gave you that example about tuberculosis is just to let you know that we are concerned about the well-being of the South African people in a very deep way, so much so that we even had that conversation about, for example, something that [unclear].                 MODERATOR:  Thank you all very much for coming.  Thank you.","content_1000":" MODERATOR:  Good afternoon.  Thank you all for coming. My name is Sarwat Hussain] from the World Bank Africa region communications.  We will begin the [unclear] from Minister Gordhan followed by Mr. Jim Kim, President of the World Bank Group.  The press conference is on the record, so let's get started.  Mr. Minister, you have the floor. MINISTER GORDHAN:  I thought we had some speakers [laughter].  Well, good afternoon to all of you, and it gives me great pleasure to, in your presence, welcome Dr. Kim to South Africa and to congratulate him on his appointment and, more importantly, to thank him for making South Africa and the African continent one of the first destinations of your overseas vists as the President of the World Bank.                 In the course of the morning, the President of the World Bank has met with the Treasury team.  He has met with about eight Min","displayconttype":"Speeches and Transcripts","originating_unit":"EXTCC","originating_unit_exact":"EXTCC","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Africa","masterconttype":"Speeches and Transcripts","node_id":"210b0c7d50eebe3c239365a247dd63bcd0156dcb","wn_title":"Press Conference with WBG President Jim Yong Kim, S.African Finance Minister Pravin Gordhan, and WB VP for Africa Makhtar Diop","wn_desc":" MODERATOR:  Good afternoon.  Thank you all for coming. My name is Sarwat Hussain] from the World Bank Africa region communications.  We will begin the [unclear] from Minister Gordhan followed by Mr. Jim Kim, President of the World Bank Group.  The press conference is on the record, so let's get started.  Mr. Minister, you have the floor. MINISTER GORDHAN:  I thought we had some speakers [laughter].  Well, good afternoon to all of you, and it gives me great pleasure to, in your presence, welcome Dr. Kim to South Africa and to congratulate him on his appointment and, more importantly, to thank him for making South Africa and the African continent one of the first destinations of your overseas vists as the President of the World Bank.                 In the course of the morning, the President of the World Bank has met with the Treasury team.  He has met with about eight Ministers and Deputy Ministers, who gave him insights into our aspirations which are contained in the National Development Plan, the kind of work that we are doing and some of the challenges that we face in basic education, in health, in water, in environment, in rural development, in science and technology, and, in particular, innovation, and with respect to small businesses in South Africa, including the infrastructure program that the President is championing in this country.                 The World Bank is a very important multilateral institution, and we, in our discussions, have confirmed our faith mutually in the multilateral system, recognizing at the same time that for the multilateral system to be inclusive and for it to be fully representative, it, itself, needs to transform itself so that it truly can say that it has democratized.                 We know that democratization processes are long processes generally, that we are very happy with and impressed with the vision that Dr. Kim has for the World Bank and, in particular, for his role.  We fully support his stance on social justice, the importance of eradicating poverty, and the importance of inclusive growth across the globe.  Today the world is challenged, whether we are in developed countries, emerging markets, or middle-income countries like South Africa, by the crucial question of, or co-questions of inclusive growth, of employment, particular for young people, and for reducing poverty and inequality in our society, be that in developed countries or developing countries.                 We are also pleased with the fact that he endorses the importance of the role of middle-income countries in the future of the World Bank.  This is important because South Africa, as a middle-income country, thinks that it is not only the big economies, be they emerging or developed, or the smaller economies in the form of the low-income countries, that should attract the assistance and support of the World Bank.  But equally, middle-income countries, particularly on the African continent and across the globe, can play an important innovation role, can play an important catalytic role, and play an important role in supporting development, particularly in subregions of a continent and, in South Africa's case, in the Sub-Saharan area generally and SADC more specifically.                 We expect that the World Bank Group’s bold, and he would, I'm sure, frankly put it, activist leadership - and that's one common ground we have between us, we both are quite happy being described as activists - will introduce a new era in the World Bank's operation, which will ensure that the formidable capabilities, knowledge and expertise, apart from the management that the World Bank has, is made available to middle-income countries and, indeed, others that require their assistance in a way in which each of the countries of the world can say that we are developing more effective systems, we are focusing on ensuring that our economies grow but they grow in a way in which social justice is increasingly at the center of it, and that they grow in a way in which we solve the problems of poverty and inequality in our society as well.                 We have shared our aspirations in terms of the infrastructure projects in South Africa, and I'm confident that the capabilities that are available within the World Bank will be made available both to the continent more generally and certainly in respect of South Africa's three billion rand aspirations in terms of infrastructure [unclear] on South African soil.                 Let me conclude by saying that Dr. Kim will have lots of high expectations placed on his shoulders, but they are fascinating opportunities for, as he would put it, South Africa to become a laboratory of good practice and innovation.  And on the government's side, as we begin to grapple and continue to grapple with issues such as economic reform so that our economies are more inclusive and more job creating and in the rest of the continent and in South Africa that are industrialized, that we will be able to also get support from the World Bank in that particular regard as well.                 One of the areas of the World Bank, there's been some fascinating work on, which we haven't too much of an opportunity to talk to Dr. Kim about, is studying economic dynamics in townships in South Africa, and we see this as an important future direction for possibilities for increasing economic growth and job creation and widening participation in economic activity in the South African economy for more of its people.                 I think we've laid a very constructive basis for cooperation with the new senior administration in the World Bank, and we look forward to working with Dr. Kim and his colleagues as we take South Africa into a period in which we'll be defining a new country strategy with the World Bank, which will attempt to place at its center the National Development Plan and the various programs that different government departments are working on.                 Thank you very much.                 MODERATOR:  Thank you.                The President of the World Bank Group.                 Thank you.                 DR. KIM:  Thank you very much. It's a great honor for me to be back in South Africa.  Prior to being President of World Bank, I worked with many colleagues in Lesotho, in Malawi and Rwanda.  And when I was director of the HIV program at the World Health Organization in 2003 to 2006, I had many occasions to come here to South Africa.                I'm here on my very first trip abroad as President of the World Bank because of my enormous respect for this country, for its people, and out of a realization that South Africa's success is important for the region, for the continent, and for the world.  South Africa is 40 percent of the African economy.  But most importantly, the government that is committed to both social inclusion and growth is leading the way and providing us another example of what we think needs to happen in the world.                 The World Bank has been very clear.  Gender and equity is critical for sustainable economic development.  A focus on youth, and especially good jobs for youth, is critical for sustainable economic development.                 And we believe, along with the South African government, that social inclusion and economic growth, especially in the private sector, are not mutually exclusive.                 And so we have an enormous stake in doing everything we can to ensure success of South Africa in achieving those goals, and that's why I'm here.                 I was very pleased and honored that I was able to meet with so many Ministers.  In the discussions, I was deeply impressed with the level of analysis that the Ministers had been doing of their own success.  We had a very frank discussion.  And the theme that came out of the discussion was extremely encouraging to me, and that theme was we will experiment with policy--excuse me, \"experiment\" is the wrong word.  We have good policy.  We've thought long and hard about the policies we've put in place, and now we are very focused on implementing, to make sure that the policies work and that they work for everybody.  And so we had a very long and intense discussion about how the World Bank and South Africa could work together on improving implementation and delivery.                 Now, this is the problem of every single country in the world.  Many countries have good policies.  Every single country in the world falls short at some point in terms of their implementation and delivery.                 The point that I wanted to make to the Honorable Minister and his colleagues is that the World Bank is full of wonderful practitioners who have extensive academic training, but who also have the experience of working in countries, working with clients, trying to improve their implementation and delivery.                 I was just extremely encouraged that we were exactly on the same page in terms of how we're going to structure our relationship.  For us, being deeply engaged in the work of South Africa is not--it is on the one hand focused on our, perhaps, ability to bring maybe some experience from other countries, some expertise.  But even more importantly, we are here to learn.  South Africa is the place where many innovations have happened, and we want to deepen our relationship with South Africa because we want to learn from the innovations and the achievements that have happened here so that we can share them not only across the continent but with the rest of the world.                 Finally, I was very honored as well to meet with President Zuma, and we spoke also about the importance of implementation and delivery.  President Zuma mentioned many different areas where he would like to cooperate with the World Bank, and one of the areas of course is health.                 I'm a physician.  I'm an anthropologist.  I worked on health care programs in Africa and in many other parts of the developing world, and once again I think that the special contribution of the World Bank may very well be that we are very good at thinking about how infrastructure and systems can impact health care delivery and health outcomes.  Moreover, we can bring experiences from other countries, other regions that might be helpful to the South African government.                 So I would like to conclude by saying that I was thrilled by my visit today.  I am here for a very clear reason South Africa is important for the entire world.  We have an enormous stake in success here, and we've laid the groundwork for, I think, a deepening collaboration that we hope will bring many good things to the people of South Africa.  But perhaps even more importantly, through our learning here, we can bring the lessons of South Africa to other countries as well.                 Thank you.                 MODERATOR:  Thank you.                 We now open up for questions.  Please identify yourself when asking a question and keep it brief.                 Mariam?                 QUESTION:  Thank you.  I have two questions actually.  One is for Minister Gordhan.  You mentioned that South Africa will be benefiting from the support of the World Bank in its infrastructure program.  How will this support come?  Will there be any financial support or will it just be logistical?                 And my second question is for Mr. Diop.  The World Bank said in a previous report that growth in South Africa has to be more inclusive to eradicate poverty.  Does the World Bank have any ideas on how to make growth more inclusive?                 MODERATOR:  Thank you, Mariam [phonetic].                 We can take another one.  Yes, go ahead. QUESTION:  Hi.  Dan [Unclear] from Bloomberg.                 I have a question for Dr. Kim.  Dr. Kim, in the last week, I think you have been listening—you said you have been listening a lot to your staff, and obviously coming into the job fairly new; so are you planning to take the Bank into a new direction?  Are there areas you are going to focus on and other areas you are going to focus less on?                 You also hinted or mentioned that you might be interested in technical assistance to developed economies such as Greece.  Has there been any movement in that direction?                 Thanks. MODERATOR:  Thank you, Dan.                 Go ahead, please. QUESTION:  [Unclear] criticism of the World Bank funding of the [unclear] because of the technology it uses.  Going forward, looking at the infrastructure development plan, would the World Bank support coal or fossil fuel-based power generation going forward, or would you look at nuclear?  Can you give us an indication of your thinking? MODERATOR:  Thank you.  We’ll take that first set of three; so, Minister Gordhan? DR. KIM:  Let me start with new directions.  One of the things that has been so striking to me about my first few months—I have been walking the halls, meeting many, many people inside the Bank—there is enormous consensus around the fundamental mission of the Bank.  Our mission is in some ways based—we are here to end poverty and to boost prosperity.  And there are a lot of different ways of doing that.                 I think there is also a growing consensus around just how to do that.  For example, the World Development Report this year is focused on jobs, and we know that in the formal sector, 90 percent of jobs in the formal sector come from the private sector.                So, here in South Africa, for example, our largest efforts are through the International Finance Corporation, our private sector wing.  So I would never dare to change a mission as powerful and clear as ending poverty and boosting prosperity.  That’s a wonderful mission to have.                 In terms of how we work, we are having that conversation in an intensive way right now:  Are we organized in a way that will allow us—and I use this term with my colleagues at the World Bank—are we organized so that we can then we can bend the arc of history that we can end poverty sooner than [unclear], that we can boost prosperity even more effectively.  And what is the nature of our relationships with our colleagues in the multilateral world?  How can we focus ourselves ever more effectively on that mission?                 And I tell you, everywhere I go in the Bank—I go to the Treasury, and the folks who manage billions of dollars of money every day tell me that they are most proud of their work in helping central banks in the poorest countries manage their assets.                 So, in my view, everyone in the Bank is focused around this issue, and so we just need to figure out a way to be the most effective organization we can be in ending poverty and boosting prosperity.                 In terms of the high-income countries, you know, we feel that in many areas, our expertise could be relevant to any country.  For example, we are especially good at analyzing social sector strategies.  We are very good at being able to say, Look, you know, we have got a lot of evidence over the years, and we have found that these kinds of social sector strategies don’t really help much, usually, and these kinds, which you are not investing in, actually can be very helpful.                 We feel that that kind of advice can be useful for lots of different countries and also with respect to work that the International Finance Corporation, the IFC does, we also think we have a lot of advice in how to improve the environment for especially [unclear] income countries.  We feel we have that expertise and [unclear].                 Of course, we have to be asked before we go in and offer advice, and I simply want to make clear that we stand ready to offer that advice.                 Coal is a difficult issue, and the project here in South Africa was one in which we have had extensive discussions among all of the [unclear] and interested parties.                 And I am a person—I am in my job because I believe in multilateralism.  And multilateralism means that you have to quietly listen to the needs and the desires of member countries and weigh that against lots of other concerns.                 So South Africa was very clear.  It needed energy in order for the economy to grow—in order for the economy to grow and provide good jobs so that people can [unclear] poverty you need energy.  And there was a very strong sense that this clean coal project was the way to go.                 So right now, we are working with the government on many clean energy projects, and we are very happy to be able to do that.  But my job is one in which we have to balance a number of different priorities.                 We all believe that we have got to mitigate climate change.  We all believe that we need a sustainable future in terms of the environment.  But we also know that energy is required in order to lift people out of poverty and to grow the economy.                 So every day in my job, I am balancing these different priorities, and that is what we will continue to do. MINISTER GORDHAN:  Let me add to that and say that we have got to recognize that energy has a major constraint on growth potential, so the ability to invest in clean coal, use the most appropriate technology to reduce carbon emissions as much as possible, and still support economic growth and increase our potential for growth is a very important project for the next five to ten years.                 At the same time, you all know that we have an Integrated Resource Plan, that renewables play an important part in that plan, as potentially does nuclear, and in the longer term, we have made very clear indications that we want to shift from coal but in a way in which it is pragmatic, it does not compromise our ability to grow the economy and create jobs, and at the same time demonstrates a commitment to renewables.                 Mariam, your question on how we will benefit from our relationship with the World Bank in terms of infrastructure, that is something that, as we clarify our own needs and look at what the World Bank has to offer both in terms of, not so much financing, unless we absolutely need it, but the kind of expertise that Dr. Kim talks about.                 What we do need in South Africa are efficient delivery systems so that intentions and policies begin to be converted very efficiently into actions on the ground that make a positive impact on our economy.  And much of our infrastructure, as you know, is on the economic infrastructure side and making quicker progress in respect to implementation in respect to those will make [unclear] as will sequencing those projects correctly, making sure that we get the right levels of coordinates and integration amongst those projects and, as we also know, our mission is to develop a 10- to 20-year pipeline of projects so that we have a continuum in terms of the way in which infrastructure develops.  All of these things are currently under discussion and development in the Presidential Infrastructure Coordinating Commission.                 So, as we develop this relationship and draw on the kinds of comparative experiences that the World Bank has to offer, we will see how that can enrich the capabilities that that may have within South Africa itself. MODERATOR:  Thank you, Mr. Minister.                 Makhtar? MR. DIOP:  Thank you very much.                 When it comes to inclusive growth, I think that the Honorable Minister has already indicated some of the work we are doing right now linked to the economics, the dynamics, of the country, but I think it is a role that you will have in shaping precisely the policy that the government is already implementing in this area. And the second area is the efficiency of service that it brings.  As you know, the government is allocating a significant amount in the social sectors.  For instance, the level of expenditures in the health sector in South Africa is beyond what you see in a lot of countries, and the government would like to improve the efficiency of those expenditures, and this is one of the specific requests that we received today from Mr. Minister, to see how we can help them, based on the experience of other countries but also based on the reality and the capacity for the local government to deliver the services to accompany [unclear] for the government.                A third dimension is all the work in the cities and how inheriting a situation linked to the type of apartheid, where the economic opportunities are not the same across the country, how we can help unifying  the economic fabric and make sure that the opportunities are geographically well-distributed across the country and what we can do.                 I think that experience exists across the world that we can bring.  One of them is what you are trying to do in the favelas in Brazil, and I know that the government is very interested in looking at some other experiences but also to look at some specific interventions that have been [unclear] here, pilot them, help piloting them and scaling it up when it works.                 So I think we could maybe put on the table all of the targeted programs in conditional cash transfer, which have been something that have helped related to the income inequality in some places in the world, and with the right conditions and the right adaptation to the South African conditions, we could also look at those.                 But it is at the center, really, of our conversation with the government, and the Minister has been very clear that he would like to not only bring the international experience but also to see what has worked in South Africa and export it to other parts of the world. MINISTER GORDHAN:  I think the interesting, if you like, imperfection at which the world finds itself today is the one that is reflected in Dr. Kim’s comments, that social justice and inclusive growth are very closely related, and should be closely related, and that we are one of the few countries—and increasingly, there are going to be more—who are trying to find strategies and policies and actual practical plans in order to work toward this kind of goal.                 This runs against the vein of conventional economics and conventional comments that many of you might be used to, so forgive me for saying so, but I think the important challenge going forward is how we educate the public more broadly but also the policymakers around the globe that unless we see this as a twin package, if you like, and that increasingly, we need to find ways in different countries of practically experimenting, if you like, with this as an ideal, with this as an important objective that we need to work toward, we won’t be able to solve the problems of the world in respect to poverty, inequality, and in particular jobs for young people.                 You will be aware that there was an ILO report yesterday which said that the trend for the next few years is increasingly unemployment among young people.  So we have got to come up with new answers, and we have got to come up with different answers.  And I certainly believe that Dr. Kim’s leadership will make an important contribution toward searching for different answers on the question of inclusive growth; and then, certainly, with the World Bank’s focus on jobs in its Development Report this year, it will start an important policy process that has been discussed within the G20 as well. MODERATOR:  Thank you, Mr. Minister.                 Yes? QUESTION:  This is Jaime Velasquez from the Spanish News Agency.  I just want to know, President, what the World Bank has to say to us about what can be the role of the World Bank in the euro crisis and in order to help some countries like Greece, maybe Spain, that are in need of solutions for [unclear]. MODERATOR:  Thank you.                 Yes—one more question from SABC QUESTION:  [Unclear] on what is going on in the mining, particularly in terms of [unclear] at the moment. MODERATOR:  Thank you. QUESTION:  Just developing it further, what [unclear]. MODERATOR:  Thank you.                 Mr. Minister, do you want to respond to the question on mining? MINISTER GORDHAN:  I think the first person there [unclear]. MODERATOR:  Okay. QUESTION:  Just on the progress that has been made on the new pension plan, could you just give us some idea of was spoken about this week on the new pension plan and where the priority and points of emphasis are going to be placed?  Is it going to be like the [unclear] or are we going to see more emphasis on [unclear] effectiveness of the way we distribute these sorts of [unclear] social infrastructure [unclear].  So, I’d like to just get some—where the points of emphasis are going to be in the new plan and [unclear].  So I'd like to just get some idea where the points of emphasis are going to be in the new plan and where the [unclear 00:30:19.] MINISTER GORDHAN:  I didn’t realize Dr. Kim played rugby, he’s just passed the ball. [Laughter.]                 MINISTER GORDHAN:  [Unclear].  Let me tackle the last question.  The new country plan or country strategy is something that we will initiate now.  It is not a process that has already been initiated.  But certainly, a focus of that would be to find an integrated way and a coordinated way of developing the interaction between the World Bank and South Africa as a whole.                 As you correctly point out, the efficiency of service delivery is certainly a major concern, and if there are lessons that we can learn which would make the resources that we allocate to certain key areas of social services emerge with the data policy of outcome that we currently do, that will certainly be an objective that we have in mind given the kinds of resource constraints that we work with.  But for the rest, I think let's wait for this process to start, and then we can certainly inform you of the way it is going.                 In respect of the rather regrettable and sad events in [unclear] and the mining industry more generally, certainly, we have got to as South Africa understand the complexity of the dynamics that have been unfolding on some of those mines.  The platinum industry has already been under severe pressure because of price issues and demand issues.  And at the same time, we must be assured that, the rest of the mines are working, the bulk of the industry is at work, the bulk of the industry is still exporting to the rest of the world, and its output is being utilized both there and in South Africa itself.  And in that sense, we need to give the employers and employee organizations an opportunity to find each other and to address both the work-related issues and some of the social issues as well, and we hope that globally, in the rest of the world, I hope Dr. Kim as a doctor, a real doctor, has some medication available which will suddenly cure the euro crisis, which will make Spain feel better immediately and which will then increase demand.  [Unclear] our process in South Africa or for some of its raw materials as well.                 Will it impact growth?  I don't think so in any significant way.  But it is important that we communicate to the world that South Africa is still hard at work, and most of it is highly productive and that it is still available for investment opportunities as well.                 Now for the prescription.                 DR. KIM:  Well, as a doctor, I can tell you we have many medicines that can make people feel better, but I don't think it's going to help the euro crisis very much.                 Let me say first of all on the mines, I don't have anything to add to what the Honorable Minister said—but I can tell you that during the discussions, we actually talked about the mines in this perspective.  We talked about the higher incidence of tuberculosis among miners and how that is a problem.  And just to give you a feel for our discussion, we talked very explicitly about the fact that tuberculosis among miners is not a problem of the mine - it is not a problem even of just South Africa.  It is a regional problem because the miners move around.  So we talked specifically about how we might work together to develop a way of providing more effective treatment for miners even when they go home to places like Lesotho during holidays, for example.                 So the mining industry is very important to South Africa, and I think we stand ready to help in organizing, for example, service delivery to miners in a way that will be more effective—and again, with the realization that this is not a medical problem, but it is actually a logistics, systems, regional problem.                 On Greece and Spain, what I said before is really that we have very specific technical expertise that may be of use, and we have offered to provide that technical assistance if the European countries are interested.  Our role is not to infuse large amounts of cash into the European economy.  This is not our role.  Our sister organization, the International Monetary Fund, is much more involved in that area.                 But I do think—well, let me put it this way.  I have great faith in the technical expertise inside the World Bank, and I think the technical expertise that we have around things like social expenditures and creating a good business environment could be useful to some of those countries, but only if they decide that they would like to ask us.                 MINISTER GORDHAN:  If I could just add, on the matter of the euro crisis, we haven't really had too much of an opportunity to talk about that with Dr. Kim.  We still reiterate our own concerns as South Africa and the African countries that this crisis is going on for too long; that there isn't enough and sufficient recognition for the spillover effects of the lack of effectiveness in dealing with the issue of banks in various countries, the issue of debt in the case of certain countries, but most important of all, we are firm believers in the fact that the real focus needs to be, apart from sorting out the banking issue and the debt issues, on how those economies return to growth and how do they play the important role that they do play within the global economy as the second-biggest, if you like, collective economy on the globe as an engine of growth, because both in their own respective countries but also elsewhere in the world, it is developing a clear path toward growth and job creation which will begin to resolve the other issues that impact upon those countries apart from any specific actions that need to be taken in respect of debt and the banking system as a whole.                 Otherwise, we are on a path of increasing declines in growth, increasing the number of jobless people around the globe, and increasing social tensions, both within the European environment but possibly elsewhere as well.  And what we are missing at this point in time is the level of leadership and boldness which will help both that region but, more importantly, the globe as a whole to begin to move on to a new and different kind of growth path.                 MODERATOR:  Thank you.  One last question from [unclear]—and then, I'm sorry, we're out of time.                 QUESTION:  Hi.  My name is Royce Williams from CNBC.  I have heard quite a bit about the programs and sort of grand plans and schemes that are being considered, and it is all novel, and so on.  So does the World Bank, Dr. Kim, have a budget for Africa, and how much is that budget for the year we are talking about [unclear] this year, this financial year?                 MR. DIOP:  Thank you very much.  African countries belong to two windows.  One is IBRD, which is middle-income countries, which South Africa belongs to with a number of countries; and IDA, which is the low-income part of our budget.                 But yearly lending—we will be lending up to mid-November if we include last year at the mid-term of the IDA cycle, which is a three-year cycle.  After a year-and-a-half, we have been lending $10 to $11 billion to the poorest countries in Africa.                 What we believe is that it is not only important to bring the resources, but it is important to leverage the resources.  What we are seeing now is a private sector both internationally and locally which is more and more involved in that [unclear] activity.                 My colleague from the IFC, Bernie, was reminding me today that we are seeing an increasing involvement of the private sector investing in energy and infrastructure in Africa.  IFC, our private sector branch, has realized this year in the low-income countries 40 percent of its investment in infrastructure, to give you an indication of how the private sector in picking up and supporting all of this.                 So we are leveraging resources, and we are working closely with the private sector to be able to meet those needs. In addition, in the conversation that we had with the Minister, there was an idea also that it was important that we continue having the resources to prepare the larger projects that the African Union has defined, particularly in energy.  And we will be [unclear] and really involved in the G20 as one of the voices of the African continent to make sure that in the G20 [unclear] will be realized very soon so that it can accelerate the [unclear.]                But already something is happening.  We just had the first phase of the Inga Project that was financed by the World Bank was taken to our Board recently.  We are moving on the Southern and Eastern African Power [unclear] and [unclear] some dynamic toward that.                 So there is a lot of interest from the private sector.  We are leveraging our resources from the IDA side, and all countries are now looking at new and innovative ways of [unclear] development and [unclear] development.                 DR. KIM:  Thank you.                 Let me just add that I have worked in Africa, and it is one of my absolute top priorities.  That is why, on my very first trip as President of the World Bank, I have come to the African continent.  So you can rest assured that on every level, I am deeply committed to the growth and the success of Africa.  And the reason I gave you that example about tuberculosis is just to let you know that we are concerned about the well-being of the South African people in a very deep way, so much so that we even had that conversation about, for example, something that [unclear].                 MODERATOR:  Thank you all very much for coming.  Thank you.","master_date":"2012-09-06T09:00:00Z","master_date_srt":"2012-09-06T09:00:00Z","master_recent_date_srt":"2012-09-06T09:00:00Z","master_recent_date":"2012-09-06T09:00:00Z","masterregion_exact":"Africa","short_description":"World Bank Group President Jim Yong Kim and South African Finance Minister Pravin Gordhan addresses the press at the end of Dr Kim's visit.","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Africa","desc":" MODERATOR:  Good afternoon.  Thank you all for coming. My name is Sarwat Hussain] from the World Bank Africa region communications.  We will begin the [unclear] from Minister Gordhan followed by Mr. Jim Kim, President of the World Bank Group.  The press conference is on the record, so let's get started.  Mr. Minister, you have the floor. MINISTER GORDHAN:  I thought we had some speakers [laughter].  Well, good afternoon to all of you, and it gives me great pleasure to, in your presence, welcome Dr. Kim to South Africa and to congratulate him on his appointment and, more importantly, to thank him for making South Africa and the African continent one of the first destinations of your overseas vists as the President of the World Bank.                 In the course of the morning, the President of the World Bank has met with the Treasury team.  He has met with about eight Ministers and Deputy Ministers, who gave him insights into our aspirations which are contained in the National Development Plan, the kind of work that we are doing and some of the challenges that we face in basic education, in health, in water, in environment, in rural development, in science and technology, and, in particular, innovation, and with respect to small businesses in South Africa, including the infrastructure program that the President is championing in this country.                 The World Bank is a very important multilateral institution, and we, in our discussions, have confirmed our faith mutually in the multilateral system, recognizing at the same time that for the multilateral system to be inclusive and for it to be fully representative, it, itself, needs to transform itself so that it truly can say that it has democratized.                 We know that democratization processes are long processes generally, that we are very happy with and impressed with the vision that Dr. Kim has for the World Bank and, in particular, for his role.  We fully support his stance on social justice, the importance of eradicating poverty, and the importance of inclusive growth across the globe.  Today the world is challenged, whether we are in developed countries, emerging markets, or middle-income countries like South Africa, by the crucial question of, or co-questions of inclusive growth, of employment, particular for young people, and for reducing poverty and inequality in our society, be that in developed countries or developing countries.                 We are also pleased with the fact that he endorses the importance of the role of middle-income countries in the future of the World Bank.  This is important because South Africa, as a middle-income country, thinks that it is not only the big economies, be they emerging or developed, or the smaller economies in the form of the low-income countries, that should attract the assistance and support of the World Bank.  But equally, middle-income countries, particularly on the African continent and across the globe, can play an important innovation role, can play an important catalytic role, and play an important role in supporting development, particularly in subregions of a continent and, in South Africa's case, in the Sub-Saharan area generally and SADC more specifically.                 We expect that the World Bank Group’s bold, and he would, I'm sure, frankly put it, activist leadership - and that's one common ground we have between us, we both are quite happy being described as activists - will introduce a new era in the World Bank's operation, which will ensure that the formidable capabilities, knowledge and expertise, apart from the management that the World Bank has, is made available to middle-income countries and, indeed, others that require their assistance in a way in which each of the countries of the world can say that we are developing more effective systems, we are focusing on ensuring that our economies grow but they grow in a way in which social justice is increasingly at the center of it, and that they grow in a way in which we solve the problems of poverty and inequality in our society as well.                 We have shared our aspirations in terms of the infrastructure projects in South Africa, and I'm confident that the capabilities that are available within the World Bank will be made available both to the continent more generally and certainly in respect of South Africa's three billion rand aspirations in terms of infrastructure [unclear] on South African soil.                 Let me conclude by saying that Dr. Kim will have lots of high expectations placed on his shoulders, but they are fascinating opportunities for, as he would put it, South Africa to become a laboratory of good practice and innovation.  And on the government's side, as we begin to grapple and continue to grapple with issues such as economic reform so that our economies are more inclusive and more job creating and in the rest of the continent and in South Africa that are industrialized, that we will be able to also get support from the World Bank in that particular regard as well.                 One of the areas of the World Bank, there's been some fascinating work on, which we haven't too much of an opportunity to talk to Dr. Kim about, is studying economic dynamics in townships in South Africa, and we see this as an important future direction for possibilities for increasing economic growth and job creation and widening participation in economic activity in the South African economy for more of its people.                 I think we've laid a very constructive basis for cooperation with the new senior administration in the World Bank, and we look forward to working with Dr. Kim and his colleagues as we take South Africa into a period in which we'll be defining a new country strategy with the World Bank, which will attempt to place at its center the National Development Plan and the various programs that different government departments are working on.                 Thank you very much.                 MODERATOR:  Thank you.                The President of the World Bank Group.                 Thank you.                 DR. KIM:  Thank you very much. It's a great honor for me to be back in South Africa.  Prior to being President of World Bank, I worked with many colleagues in Lesotho, in Malawi and Rwanda.  And when I was director of the HIV program at the World Health Organization in 2003 to 2006, I had many occasions to come here to South Africa.                I'm here on my very first trip abroad as President of the World Bank because of my enormous respect for this country, for its people, and out of a realization that South Africa's success is important for the region, for the continent, and for the world.  South Africa is 40 percent of the African economy.  But most importantly, the government that is committed to both social inclusion and growth is leading the way and providing us another example of what we think needs to happen in the world.                 The World Bank has been very clear.  Gender and equity is critical for sustainable economic development.  A focus on youth, and especially good jobs for youth, is critical for sustainable economic development.                 And we believe, along with the South African government, that social inclusion and economic growth, especially in the private sector, are not mutually exclusive.                 And so we have an enormous stake in doing everything we can to ensure success of South Africa in achieving those goals, and that's why I'm here.                 I was very pleased and honored that I was able to meet with so many Ministers.  In the discussions, I was deeply impressed with the level of analysis that the Ministers had been doing of their own success.  We had a very frank discussion.  And the theme that came out of the discussion was extremely encouraging to me, and that theme was we will experiment with policy--excuse me, \"experiment\" is the wrong word.  We have good policy.  We've thought long and hard about the policies we've put in place, and now we are very focused on implementing, to make sure that the policies work and that they work for everybody.  And so we had a very long and intense discussion about how the World Bank and South Africa could work together on improving implementation and delivery.                 Now, this is the problem of every single country in the world.  Many countries have good policies.  Every single country in the world falls short at some point in terms of their implementation and delivery.                 The point that I wanted to make to the Honorable Minister and his colleagues is that the World Bank is full of wonderful practitioners who have extensive academic training, but who also have the experience of working in countries, working with clients, trying to improve their implementation and delivery.                 I was just extremely encouraged that we were exactly on the same page in terms of how we're going to structure our relationship.  For us, being deeply engaged in the work of South Africa is not--it is on the one hand focused on our, perhaps, ability to bring maybe some experience from other countries, some expertise.  But even more importantly, we are here to learn.  South Africa is the place where many innovations have happened, and we want to deepen our relationship with South Africa because we want to learn from the innovations and the achievements that have happened here so that we can share them not only across the continent but with the rest of the world.                 Finally, I was very honored as well to meet with President Zuma, and we spoke also about the importance of implementation and delivery.  President Zuma mentioned many different areas where he would like to cooperate with the World Bank, and one of the areas of course is health.                 I'm a physician.  I'm an anthropologist.  I worked on health care programs in Africa and in many other parts of the developing world, and once again I think that the special contribution of the World Bank may very well be that we are very good at thinking about how infrastructure and systems can impact health care delivery and health outcomes.  Moreover, we can bring experiences from other countries, other regions that might be helpful to the South African government.                 So I would like to conclude by saying that I was thrilled by my visit today.  I am here for a very clear reason South Africa is important for the entire world.  We have an enormous stake in success here, and we've laid the groundwork for, I think, a deepening collaboration that we hope will bring many good things to the people of South Africa.  But perhaps even more importantly, through our learning here, we can bring the lessons of South Africa to other countries as well.                 Thank you.                 MODERATOR:  Thank you.                 We now open up for questions.  Please identify yourself when asking a question and keep it brief.                 Mariam?                 QUESTION:  Thank you.  I have two questions actually.  One is for Minister Gordhan.  You mentioned that South Africa will be benefiting from the support of the World Bank in its infrastructure program.  How will this support come?  Will there be any financial support or will it just be logistical?                 And my second question is for Mr. Diop.  The World Bank said in a previous report that growth in South Africa has to be more inclusive to eradicate poverty.  Does the World Bank have any ideas on how to make growth more inclusive?                 MODERATOR:  Thank you, Mariam [phonetic].                 We can take another one.  Yes, go ahead. QUESTION:  Hi.  Dan [Unclear] from Bloomberg.                 I have a question for Dr. Kim.  Dr. Kim, in the last week, I think you have been listening—you said you have been listening a lot to your staff, and obviously coming into the job fairly new; so are you planning to take the Bank into a new direction?  Are there areas you are going to focus on and other areas you are going to focus less on?                 You also hinted or mentioned that you might be interested in technical assistance to developed economies such as Greece.  Has there been any movement in that direction?                 Thanks. MODERATOR:  Thank you, Dan.                 Go ahead, please. QUESTION:  [Unclear] criticism of the World Bank funding of the [unclear] because of the technology it uses.  Going forward, looking at the infrastructure development plan, would the World Bank support coal or fossil fuel-based power generation going forward, or would you look at nuclear?  Can you give us an indication of your thinking? MODERATOR:  Thank you.  We’ll take that first set of three; so, Minister Gordhan? DR. KIM:  Let me start with new directions.  One of the things that has been so striking to me about my first few months—I have been walking the halls, meeting many, many people inside the Bank—there is enormous consensus around the fundamental mission of the Bank.  Our mission is in some ways based—we are here to end poverty and to boost prosperity.  And there are a lot of different ways of doing that.                 I think there is also a growing consensus around just how to do that.  For example, the World Development Report this year is focused on jobs, and we know that in the formal sector, 90 percent of jobs in the formal sector come from the private sector.                So, here in South Africa, for example, our largest efforts are through the International Finance Corporation, our private sector wing.  So I would never dare to change a mission as powerful and clear as ending poverty and boosting prosperity.  That’s a wonderful mission to have.                 In terms of how we work, we are having that conversation in an intensive way right now:  Are we organized in a way that will allow us—and I use this term with my colleagues at the World Bank—are we organized so that we can then we can bend the arc of history that we can end poverty sooner than [unclear], that we can boost prosperity even more effectively.  And what is the nature of our relationships with our colleagues in the multilateral world?  How can we focus ourselves ever more effectively on that mission?                 And I tell you, everywhere I go in the Bank—I go to the Treasury, and the folks who manage billions of dollars of money every day tell me that they are most proud of their work in helping central banks in the poorest countries manage their assets.                 So, in my view, everyone in the Bank is focused around this issue, and so we just need to figure out a way to be the most effective organization we can be in ending poverty and boosting prosperity.                 In terms of the high-income countries, you know, we feel that in many areas, our expertise could be relevant to any country.  For example, we are especially good at analyzing social sector strategies.  We are very good at being able to say, Look, you know, we have got a lot of evidence over the years, and we have found that these kinds of social sector strategies don’t really help much, usually, and these kinds, which you are not investing in, actually can be very helpful.                 We feel that that kind of advice can be useful for lots of different countries and also with respect to work that the International Finance Corporation, the IFC does, we also think we have a lot of advice in how to improve the environment for especially [unclear] income countries.  We feel we have that expertise and [unclear].                 Of course, we have to be asked before we go in and offer advice, and I simply want to make clear that we stand ready to offer that advice.                 Coal is a difficult issue, and the project here in South Africa was one in which we have had extensive discussions among all of the [unclear] and interested parties.                 And I am a person—I am in my job because I believe in multilateralism.  And multilateralism means that you have to quietly listen to the needs and the desires of member countries and weigh that against lots of other concerns.                 So South Africa was very clear.  It needed energy in order for the economy to grow—in order for the economy to grow and provide good jobs so that people can [unclear] poverty you need energy.  And there was a very strong sense that this clean coal project was the way to go.                 So right now, we are working with the government on many clean energy projects, and we are very happy to be able to do that.  But my job is one in which we have to balance a number of different priorities.                 We all believe that we have got to mitigate climate change.  We all believe that we need a sustainable future in terms of the environment.  But we also know that energy is required in order to lift people out of poverty and to grow the economy.                 So every day in my job, I am balancing these different priorities, and that is what we will continue to do. MINISTER GORDHAN:  Let me add to that and say that we have got to recognize that energy has a major constraint on growth potential, so the ability to invest in clean coal, use the most appropriate technology to reduce carbon emissions as much as possible, and still support economic growth and increase our potential for growth is a very important project for the next five to ten years.                 At the same time, you all know that we have an Integrated Resource Plan, that renewables play an important part in that plan, as potentially does nuclear, and in the longer term, we have made very clear indications that we want to shift from coal but in a way in which it is pragmatic, it does not compromise our ability to grow the economy and create jobs, and at the same time demonstrates a commitment to renewables.                 Mariam, your question on how we will benefit from our relationship with the World Bank in terms of infrastructure, that is something that, as we clarify our own needs and look at what the World Bank has to offer both in terms of, not so much financing, unless we absolutely need it, but the kind of expertise that Dr. Kim talks about.                 What we do need in South Africa are efficient delivery systems so that intentions and policies begin to be converted very efficiently into actions on the ground that make a positive impact on our economy.  And much of our infrastructure, as you know, is on the economic infrastructure side and making quicker progress in respect to implementation in respect to those will make [unclear] as will sequencing those projects correctly, making sure that we get the right levels of coordinates and integration amongst those projects and, as we also know, our mission is to develop a 10- to 20-year pipeline of projects so that we have a continuum in terms of the way in which infrastructure develops.  All of these things are currently under discussion and development in the Presidential Infrastructure Coordinating Commission.                 So, as we develop this relationship and draw on the kinds of comparative experiences that the World Bank has to offer, we will see how that can enrich the capabilities that that may have within South Africa itself. MODERATOR:  Thank you, Mr. Minister.                 Makhtar? MR. DIOP:  Thank you very much.                 When it comes to inclusive growth, I think that the Honorable Minister has already indicated some of the work we are doing right now linked to the economics, the dynamics, of the country, but I think it is a role that you will have in shaping precisely the policy that the government is already implementing in this area. And the second area is the efficiency of service that it brings.  As you know, the government is allocating a significant amount in the social sectors.  For instance, the level of expenditures in the health sector in South Africa is beyond what you see in a lot of countries, and the government would like to improve the efficiency of those expenditures, and this is one of the specific requests that we received today from Mr. Minister, to see how we can help them, based on the experience of other countries but also based on the reality and the capacity for the local government to deliver the services to accompany [unclear] for the government.                A third dimension is all the work in the cities and how inheriting a situation linked to the type of apartheid, where the economic opportunities are not the same across the country, how we can help unifying  the economic fabric and make sure that the opportunities are geographically well-distributed across the country and what we can do.                 I think that experience exists across the world that we can bring.  One of them is what you are trying to do in the favelas in Brazil, and I know that the government is very interested in looking at some other experiences but also to look at some specific interventions that have been [unclear] here, pilot them, help piloting them and scaling it up when it works.                 So I think we could maybe put on the table all of the targeted programs in conditional cash transfer, which have been something that have helped related to the income inequality in some places in the world, and with the right conditions and the right adaptation to the South African conditions, we could also look at those.                 But it is at the center, really, of our conversation with the government, and the Minister has been very clear that he would like to not only bring the international experience but also to see what has worked in South Africa and export it to other parts of the world. MINISTER GORDHAN:  I think the interesting, if you like, imperfection at which the world finds itself today is the one that is reflected in Dr. Kim’s comments, that social justice and inclusive growth are very closely related, and should be closely related, and that we are one of the few countries—and increasingly, there are going to be more—who are trying to find strategies and policies and actual practical plans in order to work toward this kind of goal.                 This runs against the vein of conventional economics and conventional comments that many of you might be used to, so forgive me for saying so, but I think the important challenge going forward is how we educate the public more broadly but also the policymakers around the globe that unless we see this as a twin package, if you like, and that increasingly, we need to find ways in different countries of practically experimenting, if you like, with this as an ideal, with this as an important objective that we need to work toward, we won’t be able to solve the problems of the world in respect to poverty, inequality, and in particular jobs for young people.                 You will be aware that there was an ILO report yesterday which said that the trend for the next few years is increasingly unemployment among young people.  So we have got to come up with new answers, and we have got to come up with different answers.  And I certainly believe that Dr. Kim’s leadership will make an important contribution toward searching for different answers on the question of inclusive growth; and then, certainly, with the World Bank’s focus on jobs in its Development Report this year, it will start an important policy process that has been discussed within the G20 as well. MODERATOR:  Thank you, Mr. Minister.                 Yes? QUESTION:  This is Jaime Velasquez from the Spanish News Agency.  I just want to know, President, what the World Bank has to say to us about what can be the role of the World Bank in the euro crisis and in order to help some countries like Greece, maybe Spain, that are in need of solutions for [unclear]. MODERATOR:  Thank you.                 Yes—one more question from SABC QUESTION:  [Unclear] on what is going on in the mining, particularly in terms of [unclear] at the moment. MODERATOR:  Thank you. QUESTION:  Just developing it further, what [unclear]. MODERATOR:  Thank you.                 Mr. Minister, do you want to respond to the question on mining? MINISTER GORDHAN:  I think the first person there [unclear]. MODERATOR:  Okay. QUESTION:  Just on the progress that has been made on the new pension plan, could you just give us some idea of was spoken about this week on the new pension plan and where the priority and points of emphasis are going to be placed?  Is it going to be like the [unclear] or are we going to see more emphasis on [unclear] effectiveness of the way we distribute these sorts of [unclear] social infrastructure [unclear].  So, I’d like to just get some—where the points of emphasis are going to be in the new plan and [unclear].  So I'd like to just get some idea where the points of emphasis are going to be in the new plan and where the [unclear 00:30:19.] MINISTER GORDHAN:  I didn’t realize Dr. Kim played rugby, he’s just passed the ball. [Laughter.]                 MINISTER GORDHAN:  [Unclear].  Let me tackle the last question.  The new country plan or country strategy is something that we will initiate now.  It is not a process that has already been initiated.  But certainly, a focus of that would be to find an integrated way and a coordinated way of developing the interaction between the World Bank and South Africa as a whole.                 As you correctly point out, the efficiency of service delivery is certainly a major concern, and if there are lessons that we can learn which would make the resources that we allocate to certain key areas of social services emerge with the data policy of outcome that we currently do, that will certainly be an objective that we have in mind given the kinds of resource constraints that we work with.  But for the rest, I think let's wait for this process to start, and then we can certainly inform you of the way it is going.                 In respect of the rather regrettable and sad events in [unclear] and the mining industry more generally, certainly, we have got to as South Africa understand the complexity of the dynamics that have been unfolding on some of those mines.  The platinum industry has already been under severe pressure because of price issues and demand issues.  And at the same time, we must be assured that, the rest of the mines are working, the bulk of the industry is at work, the bulk of the industry is still exporting to the rest of the world, and its output is being utilized both there and in South Africa itself.  And in that sense, we need to give the employers and employee organizations an opportunity to find each other and to address both the work-related issues and some of the social issues as well, and we hope that globally, in the rest of the world, I hope Dr. Kim as a doctor, a real doctor, has some medication available which will suddenly cure the euro crisis, which will make Spain feel better immediately and which will then increase demand.  [Unclear] our process in South Africa or for some of its raw materials as well.                 Will it impact growth?  I don't think so in any significant way.  But it is important that we communicate to the world that South Africa is still hard at work, and most of it is highly productive and that it is still available for investment opportunities as well.                 Now for the prescription.                 DR. KIM:  Well, as a doctor, I can tell you we have many medicines that can make people feel better, but I don't think it's going to help the euro crisis very much.                 Let me say first of all on the mines, I don't have anything to add to what the Honorable Minister said—but I can tell you that during the discussions, we actually talked about the mines in this perspective.  We talked about the higher incidence of tuberculosis among miners and how that is a problem.  And just to give you a feel for our discussion, we talked very explicitly about the fact that tuberculosis among miners is not a problem of the mine - it is not a problem even of just South Africa.  It is a regional problem because the miners move around.  So we talked specifically about how we might work together to develop a way of providing more effective treatment for miners even when they go home to places like Lesotho during holidays, for example.                 So the mining industry is very important to South Africa, and I think we stand ready to help in organizing, for example, service delivery to miners in a way that will be more effective—and again, with the realization that this is not a medical problem, but it is actually a logistics, systems, regional problem.                 On Greece and Spain, what I said before is really that we have very specific technical expertise that may be of use, and we have offered to provide that technical assistance if the European countries are interested.  Our role is not to infuse large amounts of cash into the European economy.  This is not our role.  Our sister organization, the International Monetary Fund, is much more involved in that area.                 But I do think—well, let me put it this way.  I have great faith in the technical expertise inside the World Bank, and I think the technical expertise that we have around things like social expenditures and creating a good business environment could be useful to some of those countries, but only if they decide that they would like to ask us.                 MINISTER GORDHAN:  If I could just add, on the matter of the euro crisis, we haven't really had too much of an opportunity to talk about that with Dr. Kim.  We still reiterate our own concerns as South Africa and the African countries that this crisis is going on for too long; that there isn't enough and sufficient recognition for the spillover effects of the lack of effectiveness in dealing with the issue of banks in various countries, the issue of debt in the case of certain countries, but most important of all, we are firm believers in the fact that the real focus needs to be, apart from sorting out the banking issue and the debt issues, on how those economies return to growth and how do they play the important role that they do play within the global economy as the second-biggest, if you like, collective economy on the globe as an engine of growth, because both in their own respective countries but also elsewhere in the world, it is developing a clear path toward growth and job creation which will begin to resolve the other issues that impact upon those countries apart from any specific actions that need to be taken in respect of debt and the banking system as a whole.                 Otherwise, we are on a path of increasing declines in growth, increasing the number of jobless people around the globe, and increasing social tensions, both within the European environment but possibly elsewhere as well.  And what we are missing at this point in time is the level of leadership and boldness which will help both that region but, more importantly, the globe as a whole to begin to move on to a new and different kind of growth path.                 MODERATOR:  Thank you.  One last question from [unclear]—and then, I'm sorry, we're out of time.                 QUESTION:  Hi.  My name is Royce Williams from CNBC.  I have heard quite a bit about the programs and sort of grand plans and schemes that are being considered, and it is all novel, and so on.  So does the World Bank, Dr. Kim, have a budget for Africa, and how much is that budget for the year we are talking about [unclear] this year, this financial year?                 MR. DIOP:  Thank you very much.  African countries belong to two windows.  One is IBRD, which is middle-income countries, which South Africa belongs to with a number of countries; and IDA, which is the low-income part of our budget.                 But yearly lending—we will be lending up to mid-November if we include last year at the mid-term of the IDA cycle, which is a three-year cycle.  After a year-and-a-half, we have been lending $10 to $11 billion to the poorest countries in Africa.                 What we believe is that it is not only important to bring the resources, but it is important to leverage the resources.  What we are seeing now is a private sector both internationally and locally which is more and more involved in that [unclear] activity.                 My colleague from the IFC, Bernie, was reminding me today that we are seeing an increasing involvement of the private sector investing in energy and infrastructure in Africa.  IFC, our private sector branch, has realized this year in the low-income countries 40 percent of its investment in infrastructure, to give you an indication of how the private sector in picking up and supporting all of this.                 So we are leveraging resources, and we are working closely with the private sector to be able to meet those needs. In addition, in the conversation that we had with the Minister, there was an idea also that it was important that we continue having the resources to prepare the larger projects that the African Union has defined, particularly in energy.  And we will be [unclear] and really involved in the G20 as one of the voices of the African continent to make sure that in the G20 [unclear] will be realized very soon so that it can accelerate the [unclear.]                But already something is happening.  We just had the first phase of the Inga Project that was financed by the World Bank was taken to our Board recently.  We are moving on the Southern and Eastern African Power [unclear] and [unclear] some dynamic toward that.                 So there is a lot of interest from the private sector.  We are leveraging our resources from the IDA side, and all countries are now looking at new and innovative ways of [unclear] development and [unclear] development.                 DR. KIM:  Thank you.                 Let me just add that I have worked in Africa, and it is one of my absolute top priorities.  That is why, on my very first trip as President of the World Bank, I have come to the African continent.  So you can rest assured that on every level, I am deeply committed to the growth and the success of Africa.  And the reason I gave you that example about tuberculosis is just to let you know that we are concerned about the well-being of the South African people in a very deep way, so much so that we even had that conversation about, for example, something that [unclear].                 MODERATOR:  Thank you all very much for coming.  Thank you.","date":"2012-09-06T09:00:00Z","contenttype":"Speeches and Transcripts"},"_40d4883c5637c01202f22bb300d55c5d6ce9ed9a":{"id":"40d4883c5637c01202f22bb300d55c5d6ce9ed9a","title":"Northeastern Brazil: Opportunities for Investment and Investing in Opportunities","countrycode":"AG,AR,AW,BS,BB,BZ,BM,BO,BR,KY,CL,CO,CR,CU,DM,DO,EC,SV,FK,GF,GD,GP,GT,GY,HT,HN,JM,MQ,MX,MS,AN,NI,PA,PY,PE,PR,KN,LC,VC,SR,TT,TC,UY,VE,VG","country":"Turks and Caicos Islands,Cuba,Peru,Colombia,Puerto Rico,El Salvador,Aruba,Venezuela,St. Lucia,Brazil,Falkland Islands (Malvinas),Montserrat,Panama,Haiti,Guatemala,Martinique,Argentina,Virgin Islands, British,Guyana,Mexico,French Guiana,Dominican Republic,Honduras,Cayman Islands,Dominica,Trinidad and Tobago,Netherlands Antilles,Antigua and Barbuda,St. Vincent and the Grenadines,Chile,Barbados,Belize,Jamaica,Bolivia,Paraguay,Grenada,Guadeloupe,Suriname,Costa Rica,St. Kitts and Nevis,Bahamas,Bermuda,Ecuador,Nicaragua,Uruguay,Bahamas, The,Virgin Islands (UK)","country_exact":"Turks and Caicos Islands,Cuba,Peru,Colombia,Puerto Rico,El Salvador,Aruba,Venezuela,St. Lucia,Brazil,Falkland Islands (Malvinas),Montserrat,Panama,Haiti,Guatemala,Martinique,Argentina,Virgin Islands, British,Guyana,Mexico,French Guiana,Dominican Republic,Honduras,Cayman Islands,Dominica,Trinidad and Tobago,Netherlands Antilles,Antigua and Barbuda,St. Vincent and the Grenadines,Chile,Barbados,Belize,Jamaica,Bolivia,Paraguay,Grenada,Guadeloupe,Suriname,Costa Rica,St. Kitts and Nevis,Bahamas,Bermuda,Ecuador,Nicaragua,Uruguay,Bahamas, The,Virgin Islands (UK)","countrycode_exact":"AG,AR,AW,BS,BB,BZ,BM,BO,BR,KY,CL,CO,CR,CU,DM,DO,EC,SV,FK,GF,GD,GP,GT,GY,HT,HN,JM,MQ,MX,MS,AN,NI,PA,PY,PE,PR,KN,LC,VC,SR,TT,TC,UY,VE,VG","indextype":"cq5indextype","url":"http://www.worldbank.org/en/news/speech/2012/04/10/northeastern-brazil-opportunities-for-investment-and-investing-in-opportunities","count":"Antigua and Barbuda,Argentina,Aruba,Bahamas, The,Barbados,Belize,Bermuda,Bolivia,Brazil,Cayman Islands,Chile,Colombia,Costa Rica,Cuba,Dominica,Dominican Republic,Ecuador,El Salvador,Falkland Islands (Malvinas),French Guiana,Grenada,Guadeloupe,Guatemala,Guyana,Haiti,Honduras,Jamaica,Martinique,Mexico,Montserrat,Netherlands Antilles,Nicaragua,Panama,Paraguay,Peru,Puerto Rico,St. Kitts and Nevis,St. Lucia,St. Vincent and the Grenadines,Suriname,Trinidad and Tobago,Turks and Caicos Islands,Uruguay,Venezuela,Virgin Islands (UK)","descr":"World Bank President Robert B. Zoellick talks about opportunities for investment.","keywd":"country:Turks and Caicos Islands,country:Cuba,country:Peru,country:Colombia,country:Puerto Rico,country:El Salvador,country:Aruba,country:Venezuela,country:St. Lucia,country:Brazil,country:Falkland Islands (Malvinas),country:Montserrat,country:Panama,country:Haiti,country:Guatemala,country:Martinique,country:Argentina,distribution:small_states,country:Virgin Islands, British,country:Guyana,country:Mexico,country:French Guiana,country:Dominican Republic,country:Honduras,country:Cayman Islands,country:Dominica,country:Trinidad and Tobago,country:Netherlands Antilles,country:Antigua and Barbuda,country:St. Vincent and the Grenadines,country:Chile,country:Barbados,country:Belize,country:Jamaica,country:Bolivia,country:Paraguay,country:Grenada,country:Guadeloupe,country:Suriname,country:Costa Rica,country:St. Kitts and Nevis,country:Bahamas,country:Bermuda,country:Ecuador,country:Nicaragua,country:Uruguay","lang":{"0":{"cdata!":"English"}},"admreg":"Latin America and Caribbean","cqpath":"/content/wb-home/en/news/speech/2012/04/10/northeastern-brazil-opportunities-for-investment-and-investing-in-opportunities","wcmsource":"cq5","content":"  Introduction Governors and guests, I’m delighted to welcome you to Washington. When we met in Pernambuco last June, hosted by Governor Campos, all of you presented to my colleagues and me an excellent picture of the challenges and opportunities faced by the Northeast states.  I left with a sense of great potential, and I wanted to see how the World Bank Group could offer more support.So, thank you for coming. Let’s keep up the momentum.It is also my pleasure to welcome Rubens Gama, Minister and Director of Commercial Promotion at the Ministry of Foreign Affairs; and Jurandir  Santiago, President of the Bank of the Northeast, and Luciano Coutinho, from the Brazilian National Development Bank.And I’m pleased that my good friends, Luis Alberto Moreno from the IADB and former U.S. Ambassador to Brazil, Cliff Sobel, will be joining us today.Thanks as well to participants from the private sector. You are the key to the success of this venture. Let me start by mentioning a few important changes at the World Bank.Makhtar Diop, who has done an outstanding job as the World Bank’s Country Director over the past three years, is becoming our VP for the Africa region. While I’m sorry to take Makhtar from you in Brazil, I’m sure his relationship with Brazil will remain strong, and we will rely on him to help push forward our South-South agenda, bringing the best of Brazil to the Africa region. Hasan Tuluy has recently become our new Vice President for Latin America. Hasan , who is from Turkey, has served the Bank in West Africa, the Middle East, and MIGA, our political risk insurance agency. Most recently Hasan has been our Vice President for human resources. He is a fine economist and leader, who will bring global perspectives to our work in Latin America.I would also like to introduce Debbie Wetzel, our new Country Director for Brazil. Some of you may know Debbie from her previous work in Brazil between 2006 and 2009. She was instrumental in developing our focus on the states of Brazil.  Most recently Debbie has worked with me as the Bank’s Chief of Staff.  Knowing her work well, I am confident that she will do a great job in taking the Brazil program forward. WB Work in Brazil My visit with you last year showed me first-hand the dynamism and opportunity that Brazil has to offer.  Brazil has demonstrated resilience in the global crisis and has done a remarkable job in overcoming poverty. Between 2003 and 2009, we calculate that some 22 million Brazilians emerged from poverty, and almost 13 million rose above extreme poverty.There is rapid social progress in health and education. When I was in Brazil, I was able to participate in President Dilma Rousseff’s launch of the Brasil Sem Miséria Program, which advances inclusion even further.  We are happy to be a partner in this endeavor. While in Brazil, I also visited the favelas in Rio and saw what progress has been made in their pacification and renewal. But most important, I had an opportunity to meet with you, the Governors of the Northeast, to discuss the challenges that you as Governors face and how the Bank could help partner with you.  We discussed the importance of maintaining fiscal balance and improving service delivery; the need to build infrastructure to support economic development; and the importance of the private sector as an engine of growth that could help create jobs. I could see that the heart of your mission is to create opportunities for the citizens of the Northeast, to help them find jobs that support their families as well as a growing economy.We have made good progress on the items that we discussed last June.  Our Brazil Country Partnership Strategy, approved by our Board of Directors this past September, redoubles our commitment to the Northeast region of Brazil. Your region comprises 1.6 million square kilometers – the size of France, Germany and Italy combined.  Some 55 million people live in the Northeast, representing 29 percent of Brazil’s population.  Yet the Northeast accounts for only 14 percent of Brazil’s GDP.  More than two-thirds of Brazil’s rural poor live in the Northeast. But the Northeast is the fastest growing region of Brazil, with growth rates above those of the rest of the country. In line with President Rousseff’s program to eradicate extreme poverty, the World Bank envisages some $3.7 billion in loans to the Northeast for this fiscal year, ending June 30th, and next. The IFC is also doubling its Northeast program in line with its strategic focus on frontier regions. The IFC program has 28 projects in the Northeast, amounting to $280 million and 13 percent of the IFC’s non-trade finance portfolio.Since we met last summer, the World Bank has already approved more than $ 1. 1 billion in loans to the Northeast states and the work is underway. These include: o    a project to support the water sector in Sergipe (US$70.3 million), o    the Piauí Green Growth Development Policy Loan to help the government promote green, inclusive growth in rural areas through the improvement of land tenure security, sustainable agriculture, and environmental sustainability; this project will also promote access to basic education and fiscal sustainability (US$350 million). o    the  Pernambuco Rural Economic Inclusion project to help reduce inequalities across the  state and improve the prospects for livelihood beyond the metropolitan area (US$100 million); o    the Pernambuco Expanded Opportunity Development Policy Loans, which  supports the establishment of a policy and regulatory framework in the State to address issues of social inequity and gender inclusion comprehensively ($US500 million); and o    The Ceará rural sustainability project to help strengthen regional development in micro-regions away from capital to deepen economic opportunity across the state (US$100 million).Each of these projects focuses on generating demonstrable results that will help strengthen growth, inclusion and opportunity– while building the accountability and transparency of the state. So you can see that we’ve been busy.  In the coming months, we expect to move forward further projects in support of the Northeast: o    In May, we expect our Board to approve the Recife Education Swap, which draws on a results –based approach to improve the quality and outcomes for education in order to provide a better foundation for the youth of  Pernambuco, while at the same time strengthening public sector management (US$130 million).o    In June, we expect to approve the Bahia Development Policy loan, that will support progress in social and productive inclusion; development of social, physical and institutional infrastructure; and the strengthening of planning and management in the public sector. (US$700 million); o    We are also working on an investment loan to support Rio Grande de Norte (US$360 million); and other projects to support Alagoas , Sergipe and Ceará.We believe we’ve made important progress since last June in building programs designed to support your needs. But we know that there is much more to do. IFC Work in Brazil and Lessons LearnedOur investments through the public sector are designed to lay a sounder foundation for private sector investment, growth and jobs. IFC, our private sector arm, has developed a strategy focusing on the frontier areas of Brazil.  IFC’s activities will promote regional competitiveness and job creation; opportunities for the urban poor; the integration of the Northeast with the rest of Brazil and the region; and local emerging industries driven by innovation.  IFC’s efforts will cover a wide range of sectors, including agribusiness, logistics, micro-finance, mining, telecom & IT and water and sanitation.IFCs work to date in the Northeast has provided some valuable lessons.First, we need to draw on regional players. A two-tier approach, in which we bring together local companies and what one might call the “southern blue chips” helps to obtain good results and scale.  Second, large logistical investment s are improving the competitiveness of  sectors such as fruit exports, pharmaceuticals and mining. There is also a need to focus on new industries – such as renewable energy, IT and digital industries. Third, there are enormous private sector opportunities for supporting the education and health sectors, which are experiencing double digit growth. You will hear about some of the innovations in these sectors later today. Fourth, we’ve also found that traditional family-owned industries are being managed by a new generation – one that is outward-focused and less reliant on the traditional model of support from development banks. This suggests a change in the local business culture that can be leveraged to provide new opportunities.As the Northeast region continues to grow, there will be benefits for all of Brazil. For its closest neighbors such as the Amazon and the Cerrado, building an engine of growth in the Northeast can reduce the pressures of migration, reducing social tensions and help to address environmental sustainability. Growth in the Northeast also helps all of Brazil in reducing inequality.  The Agenda AheadYou know well that these efforts are just the start for the New Northeast.  So the goal of today’s meeting is to hear from the Governors about their progress and plans, and to see how to leverage the good work they have been doing by bringing in and building relationships with the private sector. In 2008, the IFC, the Brazilian National Development Bank (BNDES), and the Inter-American Development Bank joined together to create a unit to help facilitate the structuring of public private partnerships.   This unit has been very successful, generating almost a billion US dollars of private investment in toll roads, hospitals, schools and irrigation. Now we need to do more.BNDES can tell us how it has promoted private sector engagement in the Northeast and across Brazil. The Bank of the Northeast will also share its experiences.  We hope their work can prompt investments of others.The Multilateral Guarantee Agency – or MIGA – the World Bank’s private sector guarantee arm – will describe how guarantees can reduce risk and  leverage your innovative ideas.The Federal Government is doing its part to support efforts to strengthen competitiveness and growth.  In addition to its flagship program, Brazil without Extreme Poverty” , the Government has launched the Plan Brasil Maior guided by Minister Pimentel and his team headed by Mr. Lemos, which is setting an ambitious new agenda for strengthening innovation and competitiveness throughout Brazil.There are real opportunities to scale up public-private partnerships and direct investment in the Northeast. So I hope today’s conference can facilitate interactions that will increase private sector engagement and create even further opportunity for the people of Brazil. ConclusionThe work you are doing is helping to fulfill Brazil’s enormous potential. It can also be a model for other countries.The efforts you are making to strengthen agricultural productivity, to leverage infrastructure, and pursue sustainability can help countries around the world - especially in Africa – so that others, too, can learn from successful methods and technology.  Brazil is a global leader and we hope to draw on this across the World Bank Group. We are delighted to be a partner in the valuable work that you are doing to catalyze growth, overcome poverty, and pursue inclusion and opportunity for all Brazilians. I believe firmly in the importance of the emerging market economies and in Brazil.The larger middle income countries need to be strategic partners of the WBG in the years ahead – as beneficiaries and as contributors of experience, ideas, knowledge, business, and even as contributors to poorer countries.  I look forward to hearing what comes out of your deliberations today and wish you all the best for a successful event.  ","content_1000":"  Introduction Governors and guests, I’m delighted to welcome you to Washington. When we met in Pernambuco last June, hosted by Governor Campos, all of you presented to my colleagues and me an excellent picture of the challenges and opportunities faced by the Northeast states.  I left with a sense of great potential, and I wanted to see how the World Bank Group could offer more support.So, thank you for coming. Let’s keep up the momentum.It is also my pleasure to welcome Rubens Gama, Minister and Director of Commercial Promotion at the Ministry of Foreign Affairs; and Jurandir  Santiago, President of the Bank of the Northeast, and Luciano Coutinho, from the Brazilian National Development Bank.And I’m pleased that my good friends, Luis Alberto Moreno from the IADB and former U.S. Ambassador to Brazil, Cliff Sobel, will be joining us today.Thanks as well to participants from the private sector. You are the key to the success of this venture. Let me start by ","displayconttype":"Speeches and Transcripts","originating_unit":"EXTCC","originating_unit_exact":"EXTCC","displayconttype_exact":"Speeches and Transcripts","lang_exact":"English","admreg_exact":"Latin America and Caribbean","masterconttype":"Speeches and Transcripts","node_id":"40d4883c5637c01202f22bb300d55c5d6ce9ed9a","wn_title":"Northeastern Brazil: Opportunities for Investment and Investing in Opportunities","wn_desc":"  Introduction Governors and guests, I’m delighted to welcome you to Washington. When we met in Pernambuco last June, hosted by Governor Campos, all of you presented to my colleagues and me an excellent picture of the challenges and opportunities faced by the Northeast states.  I left with a sense of great potential, and I wanted to see how the World Bank Group could offer more support.So, thank you for coming. Let’s keep up the momentum.It is also my pleasure to welcome Rubens Gama, Minister and Director of Commercial Promotion at the Ministry of Foreign Affairs; and Jurandir  Santiago, President of the Bank of the Northeast, and Luciano Coutinho, from the Brazilian National Development Bank.And I’m pleased that my good friends, Luis Alberto Moreno from the IADB and former U.S. Ambassador to Brazil, Cliff Sobel, will be joining us today.Thanks as well to participants from the private sector. You are the key to the success of this venture. Let me start by mentioning a few important changes at the World Bank.Makhtar Diop, who has done an outstanding job as the World Bank’s Country Director over the past three years, is becoming our VP for the Africa region. While I’m sorry to take Makhtar from you in Brazil, I’m sure his relationship with Brazil will remain strong, and we will rely on him to help push forward our South-South agenda, bringing the best of Brazil to the Africa region. Hasan Tuluy has recently become our new Vice President for Latin America. Hasan , who is from Turkey, has served the Bank in West Africa, the Middle East, and MIGA, our political risk insurance agency. Most recently Hasan has been our Vice President for human resources. He is a fine economist and leader, who will bring global perspectives to our work in Latin America.I would also like to introduce Debbie Wetzel, our new Country Director for Brazil. Some of you may know Debbie from her previous work in Brazil between 2006 and 2009. She was instrumental in developing our focus on the states of Brazil.  Most recently Debbie has worked with me as the Bank’s Chief of Staff.  Knowing her work well, I am confident that she will do a great job in taking the Brazil program forward. WB Work in Brazil My visit with you last year showed me first-hand the dynamism and opportunity that Brazil has to offer.  Brazil has demonstrated resilience in the global crisis and has done a remarkable job in overcoming poverty. Between 2003 and 2009, we calculate that some 22 million Brazilians emerged from poverty, and almost 13 million rose above extreme poverty.There is rapid social progress in health and education. When I was in Brazil, I was able to participate in President Dilma Rousseff’s launch of the Brasil Sem Miséria Program, which advances inclusion even further.  We are happy to be a partner in this endeavor. While in Brazil, I also visited the favelas in Rio and saw what progress has been made in their pacification and renewal. But most important, I had an opportunity to meet with you, the Governors of the Northeast, to discuss the challenges that you as Governors face and how the Bank could help partner with you.  We discussed the importance of maintaining fiscal balance and improving service delivery; the need to build infrastructure to support economic development; and the importance of the private sector as an engine of growth that could help create jobs. I could see that the heart of your mission is to create opportunities for the citizens of the Northeast, to help them find jobs that support their families as well as a growing economy.We have made good progress on the items that we discussed last June.  Our Brazil Country Partnership Strategy, approved by our Board of Directors this past September, redoubles our commitment to the Northeast region of Brazil. Your region comprises 1.6 million square kilometers – the size of France, Germany and Italy combined.  Some 55 million people live in the Northeast, representing 29 percent of Brazil’s population.  Yet the Northeast accounts for only 14 percent of Brazil’s GDP.  More than two-thirds of Brazil’s rural poor live in the Northeast. But the Northeast is the fastest growing region of Brazil, with growth rates above those of the rest of the country. In line with President Rousseff’s program to eradicate extreme poverty, the World Bank envisages some $3.7 billion in loans to the Northeast for this fiscal year, ending June 30th, and next. The IFC is also doubling its Northeast program in line with its strategic focus on frontier regions. The IFC program has 28 projects in the Northeast, amounting to $280 million and 13 percent of the IFC’s non-trade finance portfolio.Since we met last summer, the World Bank has already approved more than $ 1. 1 billion in loans to the Northeast states and the work is underway. These include: o    a project to support the water sector in Sergipe (US$70.3 million), o    the Piauí Green Growth Development Policy Loan to help the government promote green, inclusive growth in rural areas through the improvement of land tenure security, sustainable agriculture, and environmental sustainability; this project will also promote access to basic education and fiscal sustainability (US$350 million). o    the  Pernambuco Rural Economic Inclusion project to help reduce inequalities across the  state and improve the prospects for livelihood beyond the metropolitan area (US$100 million); o    the Pernambuco Expanded Opportunity Development Policy Loans, which  supports the establishment of a policy and regulatory framework in the State to address issues of social inequity and gender inclusion comprehensively ($US500 million); and o    The Ceará rural sustainability project to help strengthen regional development in micro-regions away from capital to deepen economic opportunity across the state (US$100 million).Each of these projects focuses on generating demonstrable results that will help strengthen growth, inclusion and opportunity– while building the accountability and transparency of the state. So you can see that we’ve been busy.  In the coming months, we expect to move forward further projects in support of the Northeast: o    In May, we expect our Board to approve the Recife Education Swap, which draws on a results –based approach to improve the quality and outcomes for education in order to provide a better foundation for the youth of  Pernambuco, while at the same time strengthening public sector management (US$130 million).o    In June, we expect to approve the Bahia Development Policy loan, that will support progress in social and productive inclusion; development of social, physical and institutional infrastructure; and the strengthening of planning and management in the public sector. (US$700 million); o    We are also working on an investment loan to support Rio Grande de Norte (US$360 million); and other projects to support Alagoas , Sergipe and Ceará.We believe we’ve made important progress since last June in building programs designed to support your needs. But we know that there is much more to do. IFC Work in Brazil and Lessons LearnedOur investments through the public sector are designed to lay a sounder foundation for private sector investment, growth and jobs. IFC, our private sector arm, has developed a strategy focusing on the frontier areas of Brazil.  IFC’s activities will promote regional competitiveness and job creation; opportunities for the urban poor; the integration of the Northeast with the rest of Brazil and the region; and local emerging industries driven by innovation.  IFC’s efforts will cover a wide range of sectors, including agribusiness, logistics, micro-finance, mining, telecom & IT and water and sanitation.IFCs work to date in the Northeast has provided some valuable lessons.First, we need to draw on regional players. A two-tier approach, in which we bring together local companies and what one might call the “southern blue chips” helps to obtain good results and scale.  Second, large logistical investment s are improving the competitiveness of  sectors such as fruit exports, pharmaceuticals and mining. There is also a need to focus on new industries – such as renewable energy, IT and digital industries. Third, there are enormous private sector opportunities for supporting the education and health sectors, which are experiencing double digit growth. You will hear about some of the innovations in these sectors later today. Fourth, we’ve also found that traditional family-owned industries are being managed by a new generation – one that is outward-focused and less reliant on the traditional model of support from development banks. This suggests a change in the local business culture that can be leveraged to provide new opportunities.As the Northeast region continues to grow, there will be benefits for all of Brazil. For its closest neighbors such as the Amazon and the Cerrado, building an engine of growth in the Northeast can reduce the pressures of migration, reducing social tensions and help to address environmental sustainability. Growth in the Northeast also helps all of Brazil in reducing inequality.  The Agenda AheadYou know well that these efforts are just the start for the New Northeast.  So the goal of today’s meeting is to hear from the Governors about their progress and plans, and to see how to leverage the good work they have been doing by bringing in and building relationships with the private sector. In 2008, the IFC, the Brazilian National Development Bank (BNDES), and the Inter-American Development Bank joined together to create a unit to help facilitate the structuring of public private partnerships.   This unit has been very successful, generating almost a billion US dollars of private investment in toll roads, hospitals, schools and irrigation. Now we need to do more.BNDES can tell us how it has promoted private sector engagement in the Northeast and across Brazil. The Bank of the Northeast will also share its experiences.  We hope their work can prompt investments of others.The Multilateral Guarantee Agency – or MIGA – the World Bank’s private sector guarantee arm – will describe how guarantees can reduce risk and  leverage your innovative ideas.The Federal Government is doing its part to support efforts to strengthen competitiveness and growth.  In addition to its flagship program, Brazil without Extreme Poverty” , the Government has launched the Plan Brasil Maior guided by Minister Pimentel and his team headed by Mr. Lemos, which is setting an ambitious new agenda for strengthening innovation and competitiveness throughout Brazil.There are real opportunities to scale up public-private partnerships and direct investment in the Northeast. So I hope today’s conference can facilitate interactions that will increase private sector engagement and create even further opportunity for the people of Brazil. ConclusionThe work you are doing is helping to fulfill Brazil’s enormous potential. It can also be a model for other countries.The efforts you are making to strengthen agricultural productivity, to leverage infrastructure, and pursue sustainability can help countries around the world - especially in Africa – so that others, too, can learn from successful methods and technology.  Brazil is a global leader and we hope to draw on this across the World Bank Group. We are delighted to be a partner in the valuable work that you are doing to catalyze growth, overcome poverty, and pursue inclusion and opportunity for all Brazilians. I believe firmly in the importance of the emerging market economies and in Brazil.The larger middle income countries need to be strategic partners of the WBG in the years ahead – as beneficiaries and as contributors of experience, ideas, knowledge, business, and even as contributors to poorer countries.  I look forward to hearing what comes out of your deliberations today and wish you all the best for a successful event.  ","master_date":"2012-04-10T09:24:00Z","master_date_srt":"2012-04-10T09:24:00Z","master_recent_date_srt":"2012-04-10T09:24:00Z","master_recent_date":"2012-04-10T09:24:00Z","masterregion_exact":"Latin America and Caribbean","short_description":"World Bank President Robert B. Zoellick talks about opportunities for investment.","masterconttype_exact":"Speeches and Transcripts","indextype_exact":"cq5indextype","ishighlightFeature":"N","masterregion":"Latin America and Caribbean","desc":"  Introduction Governors and guests, I’m delighted to welcome you to Washington. When we met in Pernambuco last June, hosted by Governor Campos, all of you presented to my colleagues and me an excellent picture of the challenges and opportunities faced by the Northeast states.  I left with a sense of great potential, and I wanted to see how the World Bank Group could offer more support.So, thank you for coming. Let’s keep up the momentum.It is also my pleasure to welcome Rubens Gama, Minister and Director of Commercial Promotion at the Ministry of Foreign Affairs; and Jurandir  Santiago, President of the Bank of the Northeast, and Luciano Coutinho, from the Brazilian National Development Bank.And I’m pleased that my good friends, Luis Alberto Moreno from the IADB and former U.S. Ambassador to Brazil, Cliff Sobel, will be joining us today.Thanks as well to participants from the private sector. You are the key to the success of this venture. Let me start by mentioning a few important changes at the World Bank.Makhtar Diop, who has done an outstanding job as the World Bank’s Country Director over the past three years, is becoming our VP for the Africa region. While I’m sorry to take Makhtar from you in Brazil, I’m sure his relationship with Brazil will remain strong, and we will rely on him to help push forward our South-South agenda, bringing the best of Brazil to the Africa region. Hasan Tuluy has recently become our new Vice President for Latin America. Hasan , who is from Turkey, has served the Bank in West Africa, the Middle East, and MIGA, our political risk insurance agency. Most recently Hasan has been our Vice President for human resources. He is a fine economist and leader, who will bring global perspectives to our work in Latin America.I would also like to introduce Debbie Wetzel, our new Country Director for Brazil. Some of you may know Debbie from her previous work in Brazil between 2006 and 2009. She was instrumental in developing our focus on the states of Brazil.  Most recently Debbie has worked with me as the Bank’s Chief of Staff.  Knowing her work well, I am confident that she will do a great job in taking the Brazil program forward. WB Work in Brazil My visit with you last year showed me first-hand the dynamism and opportunity that Brazil has to offer.  Brazil has demonstrated resilience in the global crisis and has done a remarkable job in overcoming poverty. Between 2003 and 2009, we calculate that some 22 million Brazilians emerged from poverty, and almost 13 million rose above extreme poverty.There is rapid social progress in health and education. When I was in Brazil, I was able to participate in President Dilma Rousseff’s launch of the Brasil Sem Miséria Program, which advances inclusion even further.  We are happy to be a partner in this endeavor. While in Brazil, I also visited the favelas in Rio and saw what progress has been made in their pacification and renewal. But most important, I had an opportunity to meet with you, the Governors of the Northeast, to discuss the challenges that you as Governors face and how the Bank could help partner with you.  We discussed the importance of maintaining fiscal balance and improving service delivery; the need to build infrastructure to support economic development; and the importance of the private sector as an engine of growth that could help create jobs. I could see that the heart of your mission is to create opportunities for the citizens of the Northeast, to help them find jobs that support their families as well as a growing economy.We have made good progress on the items that we discussed last June.  Our Brazil Country Partnership Strategy, approved by our Board of Directors this past September, redoubles our commitment to the Northeast region of Brazil. Your region comprises 1.6 million square kilometers – the size of France, Germany and Italy combined.  Some 55 million people live in the Northeast, representing 29 percent of Brazil’s population.  Yet the Northeast accounts for only 14 percent of Brazil’s GDP.  More than two-thirds of Brazil’s rural poor live in the Northeast. But the Northeast is the fastest growing region of Brazil, with growth rates above those of the rest of the country. In line with President Rousseff’s program to eradicate extreme poverty, the World Bank envisages some $3.7 billion in loans to the Northeast for this fiscal year, ending June 30th, and next. The IFC is also doubling its Northeast program in line with its strategic focus on frontier regions. The IFC program has 28 projects in the Northeast, amounting to $280 million and 13 percent of the IFC’s non-trade finance portfolio.Since we met last summer, the World Bank has already approved more than $ 1. 1 billion in loans to the Northeast states and the work is underway. These include: o    a project to support the water sector in Sergipe (US$70.3 million), o    the Piauí Green Growth Development Policy Loan to help the government promote green, inclusive growth in rural areas through the improvement of land tenure security, sustainable agriculture, and environmental sustainability; this project will also promote access to basic education and fiscal sustainability (US$350 million). o    the  Pernambuco Rural Economic Inclusion project to help reduce inequalities across the  state and improve the prospects for livelihood beyond the metropolitan area (US$100 million); o    the Pernambuco Expanded Opportunity Development Policy Loans, which  supports the establishment of a policy and regulatory framework in the State to address issues of social inequity and gender inclusion comprehensively ($US500 million); and o    The Ceará rural sustainability project to help strengthen regional development in micro-regions away from capital to deepen economic opportunity across the state (US$100 million).Each of these projects focuses on generating demonstrable results that will help strengthen growth, inclusion and opportunity– while building the accountability and transparency of the state. So you can see that we’ve been busy.  In the coming months, we expect to move forward further projects in support of the Northeast: o    In May, we expect our Board to approve the Recife Education Swap, which draws on a results –based approach to improve the quality and outcomes for education in order to provide a better foundation for the youth of  Pernambuco, while at the same time strengthening public sector management (US$130 million).o    In June, we expect to approve the Bahia Development Policy loan, that will support progress in social and productive inclusion; development of social, physical and institutional infrastructure; and the strengthening of planning and management in the public sector. (US$700 million); o    We are also working on an investment loan to support Rio Grande de Norte (US$360 million); and other projects to support Alagoas , Sergipe and Ceará.We believe we’ve made important progress since last June in building programs designed to support your needs. But we know that there is much more to do. IFC Work in Brazil and Lessons LearnedOur investments through the public sector are designed to lay a sounder foundation for private sector investment, growth and jobs. IFC, our private sector arm, has developed a strategy focusing on the frontier areas of Brazil.  IFC’s activities will promote regional competitiveness and job creation; opportunities for the urban poor; the integration of the Northeast with the rest of Brazil and the region; and local emerging industries driven by innovation.  IFC’s efforts will cover a wide range of sectors, including agribusiness, logistics, micro-finance, mining, telecom & IT and water and sanitation.IFCs work to date in the Northeast has provided some valuable lessons.First, we need to draw on regional players. A two-tier approach, in which we bring together local companies and what one might call the “southern blue chips” helps to obtain good results and scale.  Second, large logistical investment s are improving the competitiveness of  sectors such as fruit exports, pharmaceuticals and mining. There is also a need to focus on new industries – such as renewable energy, IT and digital industries. Third, there are enormous private sector opportunities for supporting the education and health sectors, which are experiencing double digit growth. You will hear about some of the innovations in these sectors later today. Fourth, we’ve also found that traditional family-owned industries are being managed by a new generation – one that is outward-focused and less reliant on the traditional model of support from development banks. This suggests a change in the local business culture that can be leveraged to provide new opportunities.As the Northeast region continues to grow, there will be benefits for all of Brazil. For its closest neighbors such as the Amazon and the Cerrado, building an engine of growth in the Northeast can reduce the pressures of migration, reducing social tensions and help to address environmental sustainability. Growth in the Northeast also helps all of Brazil in reducing inequality.  The Agenda AheadYou know well that these efforts are just the start for the New Northeast.  So the goal of today’s meeting is to hear from the Governors about their progress and plans, and to see how to leverage the good work they have been doing by bringing in and building relationships with the private sector. In 2008, the IFC, the Brazilian National Development Bank (BNDES), and the Inter-American Development Bank joined together to create a unit to help facilitate the structuring of public private partnerships.   This unit has been very successful, generating almost a billion US dollars of private investment in toll roads, hospitals, schools and irrigation. Now we need to do more.BNDES can tell us how it has promoted private sector engagement in the Northeast and across Brazil. The Bank of the Northeast will also share its experiences.  We hope their work can prompt investments of others.The Multilateral Guarantee Agency – or MIGA – the World Bank’s private sector guarantee arm – will describe how guarantees can reduce risk and  leverage your innovative ideas.The Federal Government is doing its part to support efforts to strengthen competitiveness and growth.  In addition to its flagship program, Brazil without Extreme Poverty” , the Government has launched the Plan Brasil Maior guided by Minister Pimentel and his team headed by Mr. Lemos, which is setting an ambitious new agenda for strengthening innovation and competitiveness throughout Brazil.There are real opportunities to scale up public-private partnerships and direct investment in the Northeast. So I hope today’s conference can facilitate interactions that will increase private sector engagement and create even further opportunity for the people of Brazil. ConclusionThe work you are doing is helping to fulfill Brazil’s enormous potential. It can also be a model for other countries.The efforts you are making to strengthen agricultural productivity, to leverage infrastructure, and pursue sustainability can help countries around the world - especially in Africa – so that others, too, can learn from successful methods and technology.  Brazil is a global leader and we hope to draw on this across the World Bank Group. We are delighted to be a partner in the valuable work that you are doing to catalyze growth, overcome poverty, and pursue inclusion and opportunity for all Brazilians. I believe firmly in the importance of the emerging market economies and in Brazil.The larger middle income countries need to be strategic partners of the WBG in the years ahead – as beneficiaries and as contributors of experience, ideas, knowledge, business, and even as contributors to poorer countries.  I look forward to hearing what comes out of your deliberations today and wish you all the best for a successful event.  ","date":"2012-04-10T09:24:00Z","contenttype":"Speeches and Transcripts"},"facets":{"displayconttype_exact":{"0":{"count":32,"name":"Speeches and Transcripts","label":"Speeches and Transcripts"},"1":{"count":6,"name":"Opinion","label":"Opinion"}},"lang_exact":{"0":{"count":38,"name":"English","label":"English"}}}}}