World Bank says economic growth still strong

Zoellick, who took over as head of the bank July 1, has called on the United States and other developed countries to “translate their words from summit declarations into serious numbers” and contribute to the bank branch that makes low interest loans to poor countries. He hopes to raise $33 billion by early 2008.

He said South Africa had already set a good standard by pledging a 30 percent boost in its contribution to the loan facility.

Zoellick faces a stiff challenge because in recent years wealthier countries have preferred to channel their aid to poor countries directly through their development agencies or through foundations that specialize on an issue such as malaria.

U.S. Treasury Secretary Henry Paulson said the World Bank would have to become more efficient and demand more flexibility from its staff.

“Too often the bank group has been slow in redeploying its resources and has deployed the wrong mix of resources at the expense of poor execution on high priority projects,” he said. Paulson also said the bank needs more budget discipline.

South African Finance Minister Trevor Manuel welcomed Zoellick’s emphasis on helping to overcome poverty and promote sustainable growth in poor countries, particularly those in sub-Saharan Africa.

He said the strategic objectives Zoellick has outlined in his first 100 days in office “suggests a new pragmatism at the bank that could be of real benefit to countries in our constituency.

Germany’s minister for economic cooperation and development, Heidemarie Wieczorek-Zeul said it was encouraging, despite the turbulence in financial markets, that most countries in sub-Saharan Africa “are experiencing the highest rates of growth since their independence and a further increase in their growth rates is projected.”

“Here, it is crucial that the poor can have a share in this process, too,” she said.

Based in Washington, the 185-nation World Bank lends $24 billion (euro16.8 billion) a year for projects in the developing world such as building roads, schools and health clinic. But its role as a lender has been declining as middle income countries have access to financing from other sources.

Zoellick a former U.S. deputy secretary of state, trade representative and investment banker took over from Paul Wolfowitz, a former deputy defense secretary, who resigned in May in an ethics scandal.

Zoellick has been trying to “calm the waters” that were stirred by differences Wolfowitz had with some of the member governments and the bank staff. A new strategy he has outlined would have the bank combat poverty, especially in Africa, help aid countries emerging from wars, and promote regional cooperation to combat disease and climate change.

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