LETTERS TO THE EDITOR: Those attacking Wolfensohn hope to turn back the clock Financial Times, Sep 5, 2001 By CLAIRE SHORT >From Claire Short MP. Sir, As the UK's governor of the World Bank, I would like to respond to recent critiques of the World Bank and its president, James Wolfensohn. Of course no institution is perfect but these critics ignore the considerable progress that has been made and are seeking to promote a narrow and reactionary agenda that could return the bank to the mistakes of the past. Over the past few years, there has been a fundamental and important shift in the World Bank's approach. It is now unequivocally committed to poverty reduction as the goal of all its operations and has firmly embraced the agreed international development targets. Many more country directors are based in the countries in which they operate and the bank has played a leading role in the heavily indebted poor countries initiative. One of the most important developments has been the launch of the poverty reduction strategy process. This represents a radical shift in the way development agencies approach low-income countries, strengthening the capacity of government systems so that management of the economy and provision of public services are improved in a way that promotes sustainable development and better services for all. This approach is also helping to address another of the main failings of past aid efforts: numerous unco-ordinated projects funded by different donors that impose a huge burden on the countries they are meant to help. Forward-thinking development agencies, including the World Bank and the UK Department for International Development, are now making a massive effort to improve co-ordination and to shift away from self-standing projects towards more flexible funding at the sector or national budget level. This is helping to create the conditions for the economic growth and improved public services essential to improve the lives of the poor. Many recent criticisms of the bank are about opposition to this new approach to development. By attacking Jim Wolfensohn, they hope to turn back the clock to old-style projects and excessive conditionality. I strongly agree with calls not to undermine the intellectual integrity of the bank. But I do not believe that economists sitting in Washington have all the answers. Governments of developing countries must take the lead in decisions about their own development, taking full account of the views of their citizens and building on national democratic processes. It is this change the critics so strongly oppose, as it removes power from their representatives in Washington. Reactionary forces are at work, wanting to undermine this paradigm shift in development practice. They cannot be allowed to succeed. Clare Short, Secretary of State for International Development Full article at: http://globalarchive.ft.com/globalarchive/articles.html?print=true&id=01 0905001364 Michael Keaney Mercuria Business School Martinlaaksontie 36 01620 Vantaa Finland [EMAIL PROTECTED]
