Press Release No. 05/127

Press Release: IMF Managing Director Rodrigo de Rato Pays Tribute to Outgoing World Bank President James D. Wolfensohn

May 31, 2005

Mr. Rodrigo de Rato, Managing Director of the International Monetary Fund (IMF), issued the following statement today to pay tribute to James D. Wolfensohn, the outgoing President of the World Bank Group:

"Over the past decade, the global economy has achieved unprecedented prosperity built on trade, international capital flows and technological innovation. Amidst this undeniable progress, however, remain widespread poverty, disease, and illiteracy. In a world made smaller by modern telecommunications, satellite TV, and the Internet, the vast challenges of development that we continue to face confront us everyday.

"Perhaps no individual has done more to raise the alarm, earning deserved credit for many successes and understanding all too clearly the remaining shortcomings than James Wolfensohn. As Managing Director of the IMF, I have had the privilege of working closely with Jim Wolfensohn, seeing up close a man with an extraordinary mission: The sustainable reduction of global poverty.

"Mr. Wolfensohn left a successful business career to lead the global campaign against poverty. It is perhaps the ultimate tribute to his commitment and tenacity that his efforts over the past 10 years have attracted criticism as well as praise, for he has stood at the centre of every major campaign aimed at alleviating the economic ills of our generation.

"Mr. Wolfensohn led the World Bank onto the cutting edge of every important development debate, and was at the forefront of the effort to combat HIV/Aids, as well as other deadly diseases that threaten so many impoverished countries. He has been a forthright spokesman for women's rights and a champion of environmental concerns, as well as a formidable advocate in arguing for debt reduction for the most heavily indebted nations. He also has placed the World Bank at the center of the effort to help rebuild nations emerging from devastating civil conflict, from Bosnia to Sierra Leone to East Timor.

"As World Bank President, Jim argued consistently that the world cannot be divided into haves and have-nots. Poverty anywhere means poverty everywhere, and equitable growth is needed for the stability and security of all. Indeed, that is the true meaning of globalization.

"At the same time, he made a big contribution to development work by arguing that poverty must be treated as a multi-dimensional problem. It is now widely accepted that financial assistance alone will not bring about effective poverty reduction. Rather, sustainable, pro-poor growth is the key, requiring political stability that is, peace and security for individuals good governance, and ownership of policies by all stakeholders.

"Under Mr. Wolfensohn, the World Bank followed through on this comprehensive and coordinated approach in a concrete fashion, making significant inroads into global poverty. In the last 10 years, the bank was the largest external financier of primary education, basic health care, HIV/AIDS programs, and programs aimed at protecting the environment and biodiversity. This agenda goes to the heart of improving human dignity and maintaining sustainable development.

"His insistence that corruption be confronted as part of the development process was another valuable step forward. It used to be that even mentioning corruption in some official circles was considered taboo. But corruption poses the single largest obstacle to growth and development in many countries, especially as it diverts resources from the poor. The World Bank insisted that corruption be seen as a cancer, and that fighting it be made synonymous with fighting poverty.

"Indeed, outspokenness was a hallmark of Jim Wolfensohn's tenure. Many a government minister, bank officer and NGO representative has experienced his blunt criticism, as well as his effusive praise. The IMF has not been immune to this treatment. The strength of the Bretton Woods institutions lies in intellectual diversity, and the fund benefited from Wolfensohn's honesty, as well as from his commitment to bank-fund cooperation, which progressively deepened during the past decade. The work of our two institutions in areas as diverse as poverty reduction strategies, debt relief, and the unheralded joint program to analyze financial sectors in our member countries strengthened the global economy.

"Ultimately, development is about people. Jim Wolfensohn's greatest strength has been his genuine caring for the world's poor. His legacy will include a World Bank that is firmly committed to a world free of poverty. The poor around the world may feel poorer from losing him as their champion and advocate. In fact, their prospects are brighter because of his work over the past decade."