Toespraak Koenders jaarvergadering Wereldbank 2007
Thank you, Mr President, for your remarks.
Let me start by complimenting President Zoellick on his work in these first hundred days. Public expectations are that the World Bank will be able to demonstrate that it remains a crucial global institution, ready to reduce poverty and inequality and thus promoting inclusive globalisation; globalisation with a human face it used to be called. Therefore the definition of the new strategic role of the Bank is so crucially important as is – I would say - the improvement of its internal governance.
In that definition of a new role we feel that the Bank should not try to be all things to all people, but should be selective. Strategic priorities should fit within the Bank’s main objective – poverty reduction and reduction of the vast inequality illustrated by Francois Bourguignon – while at the same time equipping it to address global concerns. The Bank should withdraw from sectors and indeed countries where it can no longer act as a catalyst for mobilising funds and knowledge to reduce poverty and foster sustainable economic growth. This will also aid the urgent need to successfully finalize the important IDA negotiations.
Our constituency broadly agrees with the six very important themes outlined by President Zoellick, but as said before, the devil is also in the detail. Most crucial are the Bank’s efforts in helping countries to overcome poverty and spur sustainable growth, in particular through IDA. But the implementation will meet four big challenges: First, at the local level the Bank really must lead on the implementation of the Paris agenda. Second, fragile states need a much more effective Bank, an institution that is flexible enough to act swiftly when time is at the essence. Thirdly, a Bank Group that is at the forefront of our climate change discussion and acts as a catalyst for innovation, in particular IFC which could play a leading role in linking the climate change agenda to public private partnerships and use some of its surplus to start building blocks for an additionally financed adaptation fund. Fourthly, the Bank should be a bank for the empowerment of women and enhance sexual and reproductive rights in order to increase the chance to reach the relevant MDG’s, which are now painfully staying behind.
With regard to Middle-Income Countries we welcome continued involvement of the World Bank Group. In many cases rapid economic growth has not only failed to provide opportunities for the poor but also extracted a heavy toll on the environment. An innovative approach is needed and a Washington-based, one-size-fits-all approach is never the answer. The innovative edge is key: ideas, knowledge, new financial instruments, since we know that aid effectiveness in some areas is simply too limited.
I also expect the World Bank Group to seek the innovative edge in Low-Income Countries, where its core business lies. The Group must operate at optimum level to achieve pro-poor results on the ground and limit conditionality to ensure these outcomes. I expect the Bank to thoroughly assess its existing instruments and mechanisms, like the large number of Trust Funds, for implementing its strategies. But the agenda must also address financing the delivery of the global public goods agenda and activism for a successful development outcome of trade negotiations at Doha. Let’s not be silent about that. This time is the key moment to take courageous decisions for developing countries.
I also believe that fragile states, where MDG’s are most difficult to attain, depend on a Bank that deploys the right human resources – people who are able to analyse complex political situations and who are willing to serve on a team, often under leadership of the UN. The Bank must cut its red tape and realise that fragile states are a real opportunity for the Bank to show it is part of the UN family. First and foremost through Multi-Donor Trust Funds, which are now far from perfect. We have to learn lessons, like from Sudan, and improve them.
We welcome efforts to strengthen more meaningful ties with civil society and we would also like to see more contact with legislators. The Parliamentary Network on the World Bank plays an important role in this respect, but it could be further strengthened in order to improve ties with parliamentarians. As an MP, I endeavoured to increase the accountability and transparency of the international financial institutions, particularly the World Bank. I assure you that my goals have not changed since I became a minister and I would like to plea for strengthening accountability of our programmes to the people concerned.
Finally, my constituency believes that organizational changes and more specifically greater decentralisation are needed. An agenda of innovation and tailor-made approaches cannot be pursued when 70% of your staff is based in Washington and only 30% in the field. I expect the strategy to flip those percentages. In 10 years’ time I hope to see a streamlined, transparent and accountable Bank that focuses on its work at country level, with strong linkages to the global equity agenda and to civil society. If those linkages are weak, if the Washington bureaucracy does not venture out of its ivory tower close to its clients, the Bank will have difficulty staying relevant in the 21st century of global interdependence. I am confident that that will not be the case.