Oct 19: The new World Bank Chief Robert Zoellick, in an innovative form has urged private sector to contribute to the International Development Association (IDA) fund that can be availed to the poorest countries. As IDA since, its establishment in 1960 is constantly working with an objective to eliminate poverty, facilitate economic growth and an improved living condition of the people.
Though the World Bank President has said this initiative is in its early stage but has already got encouraging views from members of the World Bank. As IDA is funded by the governments of its richer member countries, it is not always possible to generate that kind of fund on a regular basis to address a large number of cases of the poorest countries.
Zoellick said that the new strategy of the World Bank is in its early stage and the bank has had some discussion with companies but it can only be materialise after the board meeting. The World Bank and International Monetary Fund's annual meeting is schedule to be held at Washington, D.C. on October 20-22.
Private sector participation in IDA funding will further enhance and broaden the options of funding to poor countries which can act as a catalyst in their economic development programme.
Till now it is the developed nations like U.S., U.K., France, Germany, Japan, Italy, Sweden and Canada, which are the major contributors and the fund goes to the 81 poorest or even developing countries including 30 small nations of Africa. The bank on one hand pressing countries to donate funds to the bank and on the other also feel the need to involve the private sector to generate fund that can be used in offering interest free loans for the promotion of economic development programmes.
While addressing to press prior to the Oct 20 meeting Zoellick said, “World Bank has to change with the times, many people think that our role is just the traditional World Bank from the sixties, of project finance and others but our real role is helping create the markets, the intermediation, the institutions, so these things go on long beyond us."
"If we are able to move it forward this could offer us an opportunity to serve another one of the strategic directions I would like to encourage which is how to make sure we draw the private sector in this", he added.
The 185-member bank has also planned to work in cooperation with private sectors in developing alternative non-polluting source of energy. Citing the case of African health care sector the World Bank president also put his thought in brining private fund to the health sector. The fund can be better used in meeting infrastructure deficit and developing a better healthcare system in poor and emerging countries.
With the inclusion of private sector as donors, IDA would further boost economic development reducing poverty and improving energy needs, health, agriculture and an overall regional development in poorest developing countries.
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