World Bank Primer

Although the World Bank is a frequent target of the academic left, the multilateral government agency actually functions in a manner not altogether dissimilar from that of the UN. Specifically, it subsidizes government agencies all over the world.

On July 30th, World Bank president Paul Wolfowitz spoke to a packed auditorium at the Heritage Foundation about the issue of foreign aid. According to Dr. Wolfowitz, $20 billion in World Bank funding has gone to development efforts this year in third world countries.

Dr. Wolfowitz noted that “half a billion people have escaped extreme poverty,” adding, “more than half from China alone.” Dr. Wolfowitz told the audience that, “while culture is important […] government policy can trump culture.”

Later, Dr. Wolfowitz discussed how South Korea has a higher rate of citizens graduating from “tertiary education,” or college.

Dr. Wolfowitz focused most of his remarks on the “tremendous importance of sub-Saharan Africa.” According to Dr. Wolfowitz, 60% of people who suffer from the AIDS virus reside in sub-Saharan Africa. Also, one third of males and one half of females in the sub-Saharan area finish grammar school.

Dr. Wolfowitz mentioned the Fast Track Initiative the World Bank has when it comes to education. According to the organization’s website, “Through the Fast Track Initiative, all involved partner countries and agencies coordinate at both national and international levels to ensure greater donor harmonization, knowledge sharing and resource mobilization. Globally, the FTI encompasses all major donors for education—more than 30 bilateral, regional and international agencies and development banks.

“I don’t believe Africa is a hopeless case,” Dr. Wolfowitz remarked. “Africans are taking the lead.” He later said, “Africa is moving towards greater hope and understanding.”

“More countries are adhering to their constitutions,” Dr. Wolfowitz argued. “That says a lot about the maturity of voters in extreme poverty.”

Dr. Wolfowitz explained that “Aid is being increasingly allocated to countries that show they have good governance.” He revealed that “the turnaround can be dramatic” in these countries after they have good governance. “Good governance also builds confidence in the business market,” Dr. Wolfowitz opined.

Dr. Wolfowitz praised singer-activist Bono for his efforts with helping Africa. He also praised America for continuing “to be a central donor of the World Bank.”

Dr. Wolfowitz also addressed the issue of dealing with corruption in these countries and previous abuses by the World Bank. “We are trying to learn from mistakes of the past.”

Matthew Murphy is an intern at Accuracy in Academia.