May 10, 2002
At the 14th Frankfurt Bank evening, World Bank president James D. Wolfensohn said international banks could play a key role in improving the investment climate in developing countries, Frankfurter Allgemeine Zeitung reports (5/8, Germany). For example, international banks could participate in the privatization of bankrupt state banks and in the implementation of improved risk management systems. The crisis in Argentina proves that a robust regulatory framework is imperative. In the fight against poverty, it is necessary to develop alternative channels for the financing of development, such as stock markets or leasing.
The World Bank president called for a new partnership between industrialized and developing countries that ought to be based on common interests instead of charity. A sound investment climate in developing countries and investments to the benefit of poor people are crucial for the fight against poverty.
The population of developing countries needs access to high quality financial services so that economic growth can be stimulated and poverty reduced. Banks and financial markets can contribute to establishing a sane financial system. When lending, they need to pay attention to sound corporate management, firm regulations, the observance of anti-corruption-codes and measures against money laundering.
Stuttgarter Zeitung (Germany) reports Wolfensohn said Western banks and businesses could do far more in developing countries than just lending money. They should implement education programs in the countries where they have subsidiaries. This would also improve their bad image in these countries. Die Welt (Germany) also reports.
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