Reviews progress made on development needs
assessment
BAGHDAD, August 1, 2003 - World
Bank President James D. Wolfensohn voiced his support for international
efforts to accelerate Iraq's economic recovery following a one-day visit
to Baghdad at the invitation of Special Representative to the UN Secretary
General, Sergio Vieira de Mello. The visit took place in the context of
the needs assessment process underway since late May.
To date, more than 25 World Bank staff have traveled to Iraq and taken part in the needs assessment process, which is proceeding in coordination with United Nations development agencies. The Bank and the UN are co-sponsoring an assessment of the reconstruction needs in a wide range of sectors, including health, education, agriculture, water supply and sanitation, economic management, and investment climate. The assessment will be conducted in collaboration with the International Monetary Fund (IMF), the European Union (EU), and in close coordination with Iraqi experts at the technical level. The findings, which will be discussed with the Governing Council, will serve as the basis for a report to be distributed at a donors conference in October, highlighting priority needs and funding requirements for 2004.
Accompanied by Bank staff who have been assessing the reconstruction and development needs on the ground, Mr. Wolfensohn met with Mr. Vieira de Mello and expressed confidence in the joint World Bank-United Nations efforts to respond to the long-term development challenges facing Iraq.
Mr. Wolfensohn held discussions with Ambassador L. Paul Bremer, Administrator of the Coalition Provisional Authority on the latest progress in the reconstruction efforts. Mr. Wolfensohn and Mr. Bremer were in agreement that the future engine of growth lies with the private sector governed by a sound regulatory and legal framework and a stable environment to foster and encourage investment and economic growth. Mr. Bremer conveyed his appreciation for the knowledge brought into the assessment process from the Bank's experience in other transition economies.
In his meeting with the 25 members of the newly-formed Governing Council, Mr. Wolfensohn highlighted the challenges Iraq faced on the road to recovery and assured them of the Bank's support along the way. He expressed hope the Council would play an active role in recovering the rich potential of their country and bringing hope for a brighter future for the Iraqi people.
Upon his departure, Mr. Wolfensohn shared his impressions of the visit with a group of local reporters and the international press corps. "This is not a country without competencies or capacities and its real strength stems from an enormously rich history that gave us the Hamourabi Code," Mr. Wolfensohn said.
The Bank President said he looked forward to the completion of the needs assessment, and emphasized the readiness of the Bank to provide the maximum feasible support to Iraq during the transition toward an elected government.
Mr. Wolfensohn's visit came ahead of Bank plans to open an office in Baghdad in September, with Faris Haddad-Zervos serving as Head of Mission. Haddad-Zervos was previously managing the Bank's technical assistance program for Gulf countries.
Iraq is a founding member of the World Bank, though it has been in non-accrual status since 1990 due to non-payment of loans. Its current obligations stand at approximately US$89 million, which include interest and late charges.