World Bank chief seeks more equity

WASHINGTON -- World Bank President Robert Zoellick, seeking to establish his institution's relevance amid major shifts in global finance, said Wednesday that the bank should modify its operations in response to concerns about globalization in both rich and poor countries.

"We have to broaden the benefits," Zoellick told a National Press Club audience here.

The current era of globalization, which began with the end of the Cold War, has seen global trade flows double since 1990. But the benefits have been spread unevenly, said Zoellick, who was vice chairman of Goldman Sachs and earlier served as the No. 2 State Department official before joining the World Bank.

He called for fostering "an inclusive and sustainable globalization" to ensure that the world's poorest — "the bottom billion" — become more prosperous while discouraging the developed world from embracing "isolation."

Wednesday's speech comes as the bank continues to rebuild its credibility after a scandal earlier this year that forced former president Paul Wolfowitz from office over his handling of a sizable pay raise for a bank employee with whom he was romantically involved.

The bank also faces continuing doubts about its role amid a proliferation of private-development charities and the increasing financial resources of countries such as China and Brazil.

With 70% of the world's poor residing in such so-called middle-income countries, Zoellick said the bank should continue to make loans there. One priority: projects designed to address environmental problems.

The multilateral lending institution also should execute internal reforms that would allow it to work more quickly and use its financial resources more effectively, including by reducing the fees it charges countries for its help.

Zoellick also endorsed anti-corruption efforts initiated by Wolfowitz and indicated he would continue his predecessor's focus on Africa while devoting new attention to the Arab world. He also said the bank would pledge $3.5 billion to a periodic fundraising campaign that funnels billions in grants to the poorest nations.