November 17, 2001	Saturday	Ramazan 1, 1422

KARACHI, Nov 16: The World Bank President James Wilfensohn has spelt out a focused strategy for a new development compact that could end the monopoly of the rich countries on development strategies or societal values and empower developing countries to take key decisions driving their development.

In a note sent to Development Committee (Joint Ministerial Committee of the Board of Governors of the Bank and the Fund on the transfer of real resources to developing countries) which meets in Ottawa, Canada, on November 18 he emphasised: “ One world does not mean one model.”

And the WB chief unravelled his strategic thoughts with the observation: “It is fundamental that we recognize that what is at issue here is interdependence—that is our dependence on each other. We must not be dependent on or subordinate to, any dominant set of values or views on development. The great potential of the world lies precisely in the richness of its diverse parts. Diversity provides a source of strength, both at the national level and globally. All cultures have something of value to provide to the world and we must be open to all.”

He summed up: Resources, goods and services, values, all these things are to be exchanged, not simply exported from one dominant culture to all others. The new framework of global integration must tap the wealth of shared knowledge and the promise of global integration; it must also draw on local preferences, values and aspirations.

Stressing upon the need for a new development compact in the 15-page note to the Development Committee, he says the wealthier nations will need to commit to expanding and harmonizing aid and to the opening of their markets more fully to developing country exports. “These policies are not only a moral imperative but also a bulwark of national security,” he said and added “there is no doubt that a less inclusive world is a less stable one, and the international borders do little to stop the scourges of communicable diseases and violence.”

Earlier, he wrote in the note that we all recognize that poverty and frustration in central Asia can create haven for terrorists whose actions are felt across the planet.

Mr Wolfensohn believes that the greatest challenge for the global community in building a better world is that of fighting poverty and promoting inclusion worldwide.

While three billion people live in countries that are integrating, reforming and catching up with the rich countries, another two billion in other countries are being left further behind. And the scale of the challenge is not only immense now but rising, as a further two billion are added to the population of developing countries by 2030.

While admitting that the prospects reaching development goals may seem “remote”, he stressed yet a push towards the goals is even more imperative now, in the wake of September 11 that has darkened the picture substantially, for developed and developing countries.

His clarion call to the developed world is: “tear down trade barriers and give developing countries a better chance in the world market. “We must press ahead with capacity building to help developing countries negotiate as equal partners and we must build a development architecture that makes trade work for the world’s poor,” he added.

Noting that private capital flows to developing countries are falling sharply, reversing the trend of the last decade, the World Bank President said that this makes still more important that governments increase official assistance. Currently, aid claims only 0.22 per cent of the GNP of OECD countries, far short of 0.7 per cent goal set by the international community. He said the ODA assistance needs to be doubled to $100 billion per year to achieve the 2015 poverty goal. Over the longer term, the international community should strive to meet the target of providing 0.7 per cent of GDP.

Dealing with the social agenda, he pointed out that central to conflict prevention and peace-building must be strategies for promoting social cohesion and inclusion. Inclusion means that all have opportunities for gainful employment, and that societies avoid income equalities that threaten social stability. And it means ensuring that poor people participate in the decisions that shape their lives. Poor people are a great asset in the fight against poverty and not a liability.